State the two sources of demand of foreign exchange
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.
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
Autonomous or public investment: It is a type of investment that is not of profit motivated.
Peanut butter, jelly sandwiches and tuna fish sandwiches are replacements. Assume an international agreement decreased the worldwide catch of tuna by half. The equilibrium price of grape jelly would be: (1) Increases while the equilibrium quantity is reduced. (2) Drop
State the items that are not involved in the current account of India’s Balance of payment. Answer: The capital transactions is in the form of direct and portf
Differentiate among current account and capital account of balance of payment account. State any two transactions of capital account. Answer: Q : What does a deficit in balance of trade Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Deficit in balance of trade point: Deficit in balance of trade points out that the imports of good are bigger than exports.
Assume that many people are willing and capable to pay greater than production costs for certain goods however pervasive shortages exist. International agreements or domestic laws and policy are most likely key factors if we consider sustained scarcities in ma
5. What are the factors responsible for the recent surge in international portfolio investment?
Why foreign currency or exchange is required? Answer: a) To buy services and goods from other countries. b) To send a gift abroad. c) To buy financial assets in a specific country and d) To contem
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