Define foreign exchange
Define foreign exchange: It is the currency other than domestic currency.
Identify the key challenges to india's economic development. To what extent the second generation reforms will tackle the current challenges of india's development
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 simple circular flow model, the only entities which finally consume goods, own resources, pay taxes or bear the loads of inflation, experience joy, or suffer pain, are as: (i) corporations. (ii) Households. (iii) Government agencies. (iv) Business
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.
‘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?’
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : Techniques what are the techniques of what are the techniques of balance of payment?
what are the techniques of balance of payment?
Components of capital account of balance of payment: A) Borrowing and lending to and from abroad.B) Change in foreign exchange reserves C) Investment to and from abroad.
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
Components of current account of BOP account: (A) Import-Export of goods(B) Import-Export of services(C) Unilateral transfers
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