Advertisements
Advertisements
प्रश्न
Explain the effect of appreciation of domestic currency on imports.
उत्तर
The appreciation of domestic currency refers to an increase in the price of domestic currency related to foreign exchange. For example, $1 = Rs 50 to $1 = Rs 42 indicates that the goods from abroad will be cheaper, and hence, a rise in the demand for imports.
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
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
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?
The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?
The foreign exchange rate in India is on the rise recently. What impact is it likely to have 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.
How is the exchange rate determined under a flexible exchange rate regime?
Answer the following question.
State any two factors responsible for the inflow of foreign currency.
Discuss briefly the concept of managed floating system of foreign exchange rate determination.
What is the relationship between demand for foreign exchange and exchange rate?
______ rate is the price of one currency in terms of another.
______ rate is the ratio of foreign prices to domestic prices.
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).
Identify which of the following statement is true?
Foreign exchange refers to:
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
