Influence of demand in exchange rate
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 increases and therefore increases the demand of foreign exchange to buy more imports.
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 increases and therefore increases the demand of foreign exchange to buy more imports.
Supply of foreign exchange: (A) By exports of services and goods(B) Direct foreign investment in residence country(C) For approximate purchases by non-residents in the home country(D) Remittances
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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
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