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
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
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
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.
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.
State which kind of exchange rate has no official intervention in foreign exchange market? How it is recognized?
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
Autonomous or public investment: It is a type of investment that is not of profit motivated.
Explain how foreign exchange rate is determined beneath flexible exchange rate system. Beneath flexible exchange rate system, the equilibrium exchange rate is found out where demand for foreign exchange is equival
Determine the factors accountable for inflow of foreign currency? Answer: a) Foreigners buying home country services and goods via exports. b) Foreigners investment in home country via joint ventures and via
The simple circular flow model of a private economy describes how income and resources flow among: (1) Households and business associations. (2) Corporations and government agencies. (3) Sole corporations and proprietorship (4) Business associations a
Which transactions- autonomous or accommodating carry balance in BOP? Answer: Accommodating transactions carry balance in the BOP or balance of payment.
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