Define fixed exchange rate
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Describe the two sources of supply of foreign exchange: The two sources of supply of foreign exchange are: Exports and foreign tourism.
Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.
If the Chinese economy could create all goods with fewer resources per unit than are needed in US, the citizens of China would: (i) Encompass a comparative advantage in the whole thing. (ii) Be self-sufficient since there would be no potential profits from trade. (iii
‘Can foreign exchange markets be analyzed in similar manner as the markets for ordinary physical commodities? Do demand slope downwards and supply slope upwards for currencies?’
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.
safeguard against the crisis of confidence in system explain
Who rediscovered Bachelier’s thesis?
I have a problem in economics on Economic Growth. Please help me in the following question. Technological progress and resource reduction tend to join and hence a society’s curve of production possibilities experiences: (1) Expanded capacity. (2
Define foreign exchange: It is the currency other than domestic currency.
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