write short notes on autonomous transactions and accommodating transac
distinguish between autonomous transactions and accommodating transactions under balance of payments
‘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?’
Foreign exchange rate: The Foreign exchange rate is a price of foreign currency in terms of domestic currency.
State the two sources of demand of foreign exchange: Import of services and goods and to acquire education in abroad.
Managed floating exchange rate: This is a system in which the central bank or Government permits the exchange rate to identify market forces although they take decisions to intervene whenever they feel it suitable.
market structure and price-output determination
Describe the meaning of deficit in BOP: Whenever autonomous foreign exchange payments surpass autonomous foreign exchange receipts, the difference is termed as balance of payments deficit.
Who explained micro and macro economics?
Fixed exchange rate system (or pegged exchange rate system): This is a system in which exchange rate of a currency is fixed by government. This system makes sure stability in the foreign trade and capital movement.
Balance of payments (BOP) always balances. Describe it. Answer: Balance of payments is for all time balanced. The negative balance on current account is equated wit
Fixed exchange rate: It is the rate of exchange which is fixed by the Government in an economy.
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