Define foreign exchange
Define foreign exchange: It is the currency other than domestic currency.
Which transactions find out the balance of trade? When the balance of trade is in surplus?
If exchange rate of foreign currency downs or falls, its demand rises. Describe how? Answer: If exchange rate falls, an import become cheaper, demand for imports in
Balance of payment: It is a systematic record of each and every economic transaction of a country with the rest of world in an accounting year.
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.
Autonomous or public investment: It is a type of investment that is not of profit motivated.
‘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?’
distinguish between autonomous transactions and accommodating transactions under balance of payments
The practice considers the Treasury’s elucidation of the consequence on macroeconomic adjustment of joining the euro.
Describe which of the following is a visible and which is invisible item in Balance of payments. (a) Export of jute product (b) Software services exports. Answer: Q : State the two sources of demand of State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
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