Advertisements
Advertisements
प्रश्न
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
उत्तर
The depreciation of the domestic currency (from ₹ 80 to ₹ 92 per dollar) increases the cost of imports from the USA for Indian buyers in terms of Indian rupees. As a result, India's wheat imports from the USA may decline.
APPEARS IN
संबंधित प्रश्न
Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
Explain the effect of appreciation of domestic currency on imports.
How does giving incentives for the exports influence foreign exchange rate? Explain
Define foreign exchange rate.
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.
When price of a foreign currency rises, its demand falls. Explain why.
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.
Discuss briefly the concept of managed floating system of foreign exchange rate determination.
How is the rate of exchange determined in a flexible exchange rate system?
______ rate is the price of one currency in terms of another.
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:
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
If the value of US Dollar increases continuously in terms of Yen, it will result in ______.
