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प्रश्न
Define foreign exchange rate.
उत्तर
The foreign exchange rate is the rate at which one currency is exchanged for the other. It implies the price of one currency related to the other currency.
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.
Explain the effect of appreciation of domestic currency on imports.
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
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
The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?
Would the central bank need to intervene in a managed floating system? Explain why.
Answer the following question.
State any two factors responsible for the inflow of foreign currency.
What is the relationship between demand for foreign exchange and exchange rate?
Suppose it takes 1.25 yen to buy a rupee, and the price level in Japan is 3 and the price level in India is 1.2 Calculate the real exchange rate between India and Japan (the price of Japanese goods in terms of Indian goods).
______ is a scheme under which government can intervene to vary the exchange rate when the situation demands so.
Foreign Exchange Thansactions which are independent of other transactions in the Balance of Payments Account are called:
Identify which of the following statement is true?
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 gold jewellery by the USA from India
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.
If the value of US Dollar increases continuously in terms of Yen, it will result in ______.
