Point out a merit of flexible exchange rate
Point out a demerit of fixed exchange rate
Point out a demerit of flexible exchange rate
A component of current account of the BOP account is
Currency depreciation occurs when
Currency appreciation occurs when
When currency becomes less valuable for the Rest of the world, it is called
Managed floating exchange rate is a system in which the
A component of capital account of balance of payment is
Which transactions determine the balance of trade?
Balance of trade is in surplus when
A deficit in BOP occurs
Devaluation is a
Devaluation is the deliberate downward adjustment of the value of a country's money relative to another currency, group of currencies, or currency standard. Countries that have a fixed exchange rate or semi-fixed exchange rate use this monetary policy tool. It is often confused with depreciation and is the opposite of revaluation, which refers to the readjustment of a currency's exchange rate.
Depreciation is a
When price of a foreign currency rises its supply also rises.
If exchange rate increases, this will make
The demand for foreign exchange and the exchange rate has
The demand curve for foreign exchange is
The supply of foreign exchange and the exchange rate has
The supply curve of foreign exchange is