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What is Meant by Depreciation of Domestic Currency? - Economics

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प्रश्न

What is meant by the depreciation of domestic currency?

उत्तर

Depreciation of domestic currency refers to decrease in the value of a domestic currency in terms of foreign currency. For example, if the price of $1 increases from Rs 55 to Rs 59. It means to fall in the price of the domestic currency.

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2016-2017 (March) All India Set 1

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संबंधित प्रश्‍न

Explain the distinction between autonomous and accommodating transactions in balance of payments. Also explain the concept of balance of payments 'deficit' in this context


Foreign exchange transactions which are independent of other transactions in the Balance of Payments Account are called ______.


Indian investors lend abroad. Answer the following questions :

(a) In which sub-account and on which side of the Balance of Payments Account such lending is recorded? Give reasons.

(b) Explain the impact of the lending on market exchange rate.


Indian investors borrow from abroad. Answer the following:

a. In which sub-account and on which side of the Balance of Payments Account will this borrowing be recorded? Give reason.

b. Explain what is the impact of this borrowing on exchange rate.


Will the following be included in the national income of India? Give reasons for your answer

Profit earned by the branches of a foreign bank in India


Will the following be included in the national income of India? Give reasons for your answer

Salaries of Indians working in the American Embassy in India


Name the broad categories of transactions recorded in the 'capital account' of the Balance of Payments Account


Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.


What is 'current account deficit' in the balance of payments?


Distinguish between 'autonomous' and accommodating' Balance of Payments transactions.


How is balance of payment 'deficit' measured? Explain.


Answer the following question.
Discuss the various components of the current account of the balance of payment.


Distinguish between Autonomous and Accommodating transactions of Balance of Payments account.


Briefly explain two reasons for the adverse Balance of Payments in any economy.


A balance of payments is an accounting statement that provides a systematic record of all the ______ transactions between the residents of a country and the rest of the world during a given period of time.


Accommodating items are also called ______


Categorise the following item into Current Account or Capital Account of Balance of Payment of India.

Acquisition of land in India by an American firm


Categorise the following item into Current Account or Capital Account of Balance of Payment of India.

Dividend paid to foreigners on their investment in shares in India.


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