Advertisements
Advertisements
प्रश्न
Why is the demand curve for foreign exchange negatively sloped?
उत्तर
Demand for foreign exchange has a negative sloping demand curve since the rate of foreign exchange inversely relates to demand for foreign exchange. Foreign goods get more expensive for domestic consumers as the value of the local currency depreciates; this lowers the demand of foreign exchange; conversely, when the domestic currency appreciates, foreign goods become cheaper for domestic consumers, so increasing the demand for foreign currency.
APPEARS IN
संबंधित प्रश्न
Foreign exchange transactions dependent on other foreign exchange transactions are called ______.
Why does the demand for foreign currency fall and supply rise when its price rises? Explain.
Other things remaining the same, when in a country the market price of the foreign currency falls, national income is likely (Choose the correct alternative)
a. to rise
b. to fall
c. to rise or to fall
d. to remain unaffected
Visits of foreign countries for sightseeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?
What is 'devaluation'?
The foreign exchange rate in India is on the rise recently. What impact is it likely to have on exports and how?
What is 'appreciation' of domestic currency? What is its likely effect on exports and how?
Give the meaning of ‘foreign exchange’ and ‘foreign exchange rate’. Giving reason, explain the relation between foreign exchange rate and demand for foreign exchange.
What is the relationship between supply of foreign exchange and exchange rate?
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is ______.
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.
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 technical knowledge by the USA to India
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.
