Define flexible exchange rate
Flexible exchange rate: The rate of exchange in terms of other currencies is determined by market forces of demand-supply.
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : Define fixed exchange rate Fixed Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
‘The country has a floating exchange rate and its inflation rate is much higher than its trading partners. Why we would suppose the country’s exchange rate to deflate?’
suppose that an investor has an extra cash reserve of $1000000 to invest for one year. annually rate is 10%
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.
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
In which account of balance of payment tourism services to tourist are involved? Answer: Tourism services to tourist are comprised in current account of Balance of
Who won the Nobel Prize for Economics in 1997?
Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via
5. What are the factors responsible for the recent surge in international portfolio investment?
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