--%>
Assignment Help - homework help

What is Flexible exchange rate system

Flexible (or floating) exchange rate system: This is a system in which exchange rate is found out by forces of demand and supply of the foreign currencies concerned in the foreign exchange market. There is no official interference in the foreign exchange market.

   Related Questions in International Economics

  • Q : Describe the meaning of deficit in BOP

    Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.

    		•
  • Q : Need of foreign currency Why foreign

    Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem

    		•
  • Q : Define Managed floating rate system

    Managed floating rate system: This is a system in which foreign exchange rate is found out by market forces and central bank is a key contributor to stabilize the currency in condition of tremendous appreciation or depreciation.

    		•
  • Q : Why Demand for foreign exchange is made

    Demand for foreign exchange is prepared to: (A) Purchase services and goods (B) Send gifts and funding(C) Speculate the value of foreign currencies, (D) Invest and procure financial assets

    		•
  • Q : Calculating value of imports Calculate

    Calculate the value of imports, if the net imports are of Rs 160 crores and the value of exports are of Rs 400 crores.

    		•
  • Q : Problems suppose that an investor has

    suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%

    		•
  • Q : Economic environment in Australia and

    Explain the Economic environment in Australia and Internationally and their factors which affect them?

    		•
  • Q : Components of current account of BOP

    Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers

    		•
  • Q : Problem on completely employed economy

    In a completely employed economy, the higher the yield of capital goods, and the bigger its: (1) Present living standards. (2) Present output of consumer goods. (3) Growth of capacity for the future production. (4) Rates of inflation and unemployment.

    		•
  • Q : Techniques what are the techniques of

    what are the techniques of balance of payment?

    		•