Advertisements
Advertisements
Questions
Give meaning of managed floating exchange rate.
Explain the meaning of Managed Floating Exchange Rate.
What is 'managed floating exchange rate'?
Solution 1
The managed floating exchange rate is the system in which the exchange rate is determined by the market forces and controls the value of currency appreciation or depreciation by the Central Bank.
Solution 2
Managed floating is a system which allows adjustments in exchange rate according to a set of rules and regulations which are officially declared in the foreign exchange market. It is the combination of both fixed exchange rate and the flexible exchange rate. Here, the exchange rate is agreed on the basis of market forces along with the involvement of the monetary authority.
APPEARS IN
RELATED QUESTIONS
Foreign exchange transactions dependent on other foreign exchange transactions are called ______.
Explain the effect of appreciation of domestic currency on imports.
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?
What is 'devaluation'?
Define foreign exchange rate.
When price of a foreign currency rises, its demand falls. Explain why.
When price of a foreign currency rises, its supply also rises. Explain why.
How is the exchange rate determined under a flexible exchange rate regime?
Would the central bank need to intervene in a managed floating system? Explain why.
How is the rate of exchange determined in a flexible exchange rate system?
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).
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?
When domestic currency loses its value in relation to a foreign currency in the international money market, it is a situation of:
Why is the demand curve for foreign exchange negatively sloped?
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
Briefly discuss the fixed exchange rate system of determining foreign exchange rate.
If the value of US Dollar increases continuously in terms of Yen, it will result in ______.
