How can an unexpected fall in exchange rates injure the financial health of a nation’s banks?

Q: advantages and disadvantages of currency boards and dollarization over a monetary policy that uses…

A: A currency board is a monetary authority which is required for maintainance of a fixed exchange rate…

Q: What are five (5) factors that affect real exchange rate?

A: "The rate at which one country's currency can be exchanged into another," according to the…

Q: How does Balance of International Payment affect the financial system

A: The measure that depicts whether the country is producing enough economic output in order to pay for…

Q: what is volatility in exchange rate ?

A: Exchange rate is defined as the rate at which the currency of one country is exchange for the…

Q: Why did countries like the Philippines abandon the adjustable peg system and replaced it with the…

A: Introduction: Abandoned children are a concern in the Philippines. According to the United Nations…

Q: Find out any three saarc countries and find out their nominal exchange rate?

A: South Asian Association for Regional Cooperation (SAARC)  It is an intergovernmental organization…

Q: Explicate the central banks role in the administration of exchange control?

A: The central bank of the country is the apex bank of the country which regulates all commercial banks…

Q: What is the function of the International Monetary Fund?

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What is it that determines the relationship between spot and forward foreign exchange rates?

A: The spot exchange rate is the rate at which transactions happen currently. The forward exchange rate…

Q: discuss the qualities if an efficient international monetary system that US should work towards

A: IMS is a set of international agreed rules and the institutions that facilitates for the…

Q: Which of the following is not an advantage of Foreign Banks?

A: Volatility measures the deviation of value from the mean. Higher the deviation, higher will be…

Q: What were the implications of the 1998 Russian Financial Crisis on the exchange rate and currency…

A: The Foreign Exchange Rate is the rate at which one currency is exchanged for another. The foreign…

Q: What actions should be taken by 'European Central Bank' to counter the negative affects of the…

A: There are many reasons behind the Russian-Ukraine war, the main reason behind it can be considered…

Q: What are the UK central bank's functions? How is the exchange rate of the country managed? Do you…

A: The exchange rate refers to the price of one country's currency against another. In the economy,…

Q: Explain to the citizens of your country the situations that surround the balance of payment in an…

A: When an economy open ups their boundaries to make trade transactions with other economies, it will…

Q: What are the  central bank's functions? How is the exchange rate of the country managed? Do you feel…

A: Exchange rate is defined as the price of the currency of one country against another currency.…

Q: Differentiate between floating exchange rate and exchange rate?

A: An exchange rate regulated by the economic authority with regard to a foreign currency or a bundle…

Q: How a weak currency positively affect the economy?

A: Currency refers to a medium of exchange for goods and services. It is basically money that can be…

Q: Use the Mundell-Fleming model to explain the effect of restrictive monetary policy with floating…

A: Mundell-Fleming model explains the effect of policies that can be both fiscal and monetary in nature…

Q: What would be a major disadvantage to dollarization? How would a central bank work in a country that…

A: Dollarization is the phenomenon where a country uses the currency of another country in addition to…

Q: Why does the demand for foreign currency falls when its price rises

A: According to the given question In Simple words we can that the currency which can be usually used…

Q: What is the current system of exchange rates? explain

A: There are three types of exchange rate: Fixed exchange rate: This implies when the value of one…

Q: Discuss the role of international monetary system

A: An international system (IMS) may be a set of laws, conventions, and supporting establishments that…

Q: In your own words, what is the importance/benefit of our membership to International Monetary Fund

A: The 190 member countries govern and hold the IMF accountable. The founding and mission of the…

Q: Why floating exchange rate is more competitive than hard peg exchange rate?

A: In an economy whereby the supply and demand tools helps in setting the exchange rate, then such…

Q: What are the objectives and advantages of international monetary fund?

A: The IMF is an international association that addresses 190 part countries. It tries to promote…