Advertisements
Advertisements
प्रश्न
What is 'devaluation'?
उत्तर
Devaluation means a reduction in the price of domestic currency related to all foreign currencies in a fixed exchange rate system.
संबंधित प्रश्न
(a) In which sub-account and on which side of balance of payments account will foreign investments in India be recorded? Given reasons.
(b)What will be the effect of foreign investments in India on exchange rate? Explain.
Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
Other things remaining the same, when the foreign currency becomes cheaper, the effect on national income is likely to be : (Choose the correct alternative)
a. Positive
b. Negative
c. Positive and negative both
d. No effect
How does giving incentives for the exports influence foreign exchange rate? Explain
The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?
Give the meaning of ‘foreign exchange’ and ‘foreign exchange rate’. Giving reason, explain the relation between foreign exchange rate and demand for foreign exchange.
When price of a foreign currency rises, its demand falls. Explain why.
When price of a foreign currency rises, its supply also rises. Explain why.
How is the exchange rate determined under a flexible exchange rate regime?
How is the rate of exchange determined in a flexible exchange rate system?
______ rate is the price of one currency in terms of another.
______ rate is the ratio of foreign prices to domestic prices.
Identify which of the following statement is true?
When domestic currency loses its value in relation to a foreign currency in the international money market, it is a situation of:
Suppose the exchange rate was \[\ce{$}\]1 = ₹ 80 and later changed to \[\ce{$}\]1 = ₹ 92. What will be its effect on the following?
Export of cotton garments by India to the USA
Suppose the exchange rate was \[\ce{$}\]1 = ₹ 80 and later changed to \[\ce{$}\]1 = ₹ 92. What will be its effect on the following?
Import of wheat by India from the USA
Briefly discuss the fixed exchange rate system of determining foreign exchange rate.
State whether the following items will be included in the estimation of National Income or not: Give a reason for your answer.
Profit earned by State Bank of India in a foreign country.
