--%>

Exchange rates-a question of demand and supply

‘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?’

E

Expert

Verified

Making an understanding of the foreign exchange markets by thinking the application of demand and supply analysis and then the problems which occur in this market.

   Related Questions in International Economics

  • 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 : Accounts in Balance of Payments or BOP

    Name the accounts in the balance of payments (BOP)? Answer: a. Current account: It exhibits the imports and exports of services and goods and transfer payments.b. Capital Account: It exhibits the assets and li

  • 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 : Who was 1970 Nobel Laureate in Economics

    Who was 1970 Nobel Laureate in Economics?

  • Q : Tourism services to tourist-Balance of

    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

  • Q : Determinants of market market structure

    market structure and price-output determination

  • Q : What is autonomous or public investment

    Autonomous or public investment: It is a type of investment that is not of profit motivated.

  • Q : Rise in the exchange rate-always good

    ‘The pound has enhanced today on the foreign exchange market’ is a general media comment whenever the pound sterling appreciates. When the pound appreciates is it always excellent news for business and the economy?’

  • Q : Joining the euro-the effect on the

    ‘How is the equilibrium £:€ exchange rate presently determined? When UK was aiming to adopt the euro in the next to future we would be predicted to ‘shadow’ the euro for a while (the £:€ exchange rate would change merely among v

  • 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