importance and effects  of foreign exchange markets on the business world and the economy

Q: The balance of payments of a country is based on the difference between the fund inflows and…

A: When talking about the balance of payment account, it is the account of a country to make record of…

Q: Discuss the reasons for keeping foreign exchange reserve. What are the strategies of managing…

A: Foreign exchange reserves are resources hung on hold by a central bank in foreign monetary…

Q: # Foreign investment are recorded in the capital account of Balance of payment. True/False

A: Balance of payment refers to the record of the international transactions that the domestic country…

Q: Critically examine the FIVE types of foreign exchange market participants and identify their motives…

A: Foreign Exchange Market is a global digital network where foreign currencies are bought and sold by…

Q: What is meant by the term exchange rate .

A: The rate at which one currenccy of a nation is exchanged to another is commonly known as an exchange…

Q: Foreign investment is counted under capital account of balance of payments.  True/False

A: In international macroeconomics the capital account of the balance of payment is account which keeps…

Q: Discuss how government intervention in the foreign exchange market can effect economic conditions of…

A: 1.Government intervention in foreign exchange market. There are 2 types of foreign exchange rate:…

Q: State reasons why countries renominate their currency

A: The process of voluntarily adjusting the face value of circulating currency is known as…

Q: Why is it necessary to know the process and policies foreign exchange rate?

A: In International trade, exchange rate is defined as the rate at which the currency of one country…

Q: Changes or variations in Foreign Exchange Rates can create a lot of uncertainties for businesses. As…

A: Most businesses import and export their goods all over the world because we live in a global…

Q: Explain a balance of payments for a country.

A: (Q)Explain a balance of payments for a country.

Q: Using an appropriate diagram of foreign exchange market, explain the concepts of currency…

A: A foreign exchange market is defined as a place where the global exchange of currencies takes place,…

Q: a nation's currency is said to appreciate when exchange rates change so that a unit of its currency…

A: Answer: True, Explanation: If the currency of a  nation appreciates then it buys more units of…

Q: what are foreign exchange markets and what is their most important function and its performance

A: foreign exchange markets The foreign exchange market is a market in which there will be a continuous…

Q: What effect does a high exchange rate have on imports, exports, and that country's production?

A: The rate that measures the value of a nation’s currency in terms of another nation’s currency is…

Q: uncovered interest parity

A: The interest rate parity implies that the expected return from two countries will equalized by the…

Q: Identify FOUR (4) characteristics of the foreign exchange market that makes it unique from other…

A: A foreign exchange market is a market where currencies are bought and sold.

Q: Explain the situation in terms of balance of payments and the effect of Sri Lanka’s economic crisis…

A: If a country cannot support its imports through capital exports, it will have to deplete its…

Q: What is exchange rate? (import/export)

A: Exchange rate is that rate of conversion at which one currency is exchanged with another currency.…

Q: An appreciated currency can buy foreign currency

A: Currency appreciation means rise in the value the country's currency with respect to another…

Q: The impacts of the trade war regarding the determination of foreign exchange rates based on supply…

A: A trade war happens when one country imposes trade barriers in another country's imports and…

Q: A strong US dollar tends to   A. Reduce exports to foreign buyers   B. Reduce imports…

A: When the dollar value increases, then it makes import cheaper and export costlier. The reason is…

Q: balance of payments issued by a country: deficit or surplus?

A: BALANCE OF PAYMENT(BOP) is the systematic record of all economic and financial transactions between…

Q: Discuss how decisions by consumers, firms, and governments affect the balance of payments.

A: The balance of payments(BOP) situation of a country is affected by the decisions taken by different…

Q: what are some factors affecting the quantity of US dollars supplied in the foreign exchange market?

A: The foreign exchange market helps in the determination of the exchange rate for various currencies.…

Q: Why can you not borrow more foreign currency in a fixed exchange rate system?

A: A fixed exchange rate system, also defined as a pegged exchange rate, is the one in which currency's…

Q: Explain the balance of payments situation in India.

A: The balance of payments refers to the balance of the transactions that a country do with rest of the…

Q: What are the consequences of Inflation on the balance of payments stability of a place

A: Inflation impacts Balance of Payments through impacting the Imports and Exports to and from the…

Q: Why do exchange rates matter to companies, especially those involved with the foreign direct…

A: Exchange rate (ER) tells us how much of a currency (home) is valued against the other (foreign).…

Q: Exchange Rate Regimes?

A: The exchange rate between two currencies is the rate at which one currency can be traded for…

Q: Which of the following will decrease the supply of US dollarsin the foreign exchange market? (A) US…

A: A foreign exchange market is a market where the currency of one country is exchanged with the…

Q: Most important participant in foreign exchange markets are

A: The foreign exchange market (also known as the FX market or currencies market) is the global…

Q: If a company believed that a nation was preparing to devalue its currency, the company should reduce…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Long-Run Trends in the Real Exchange Rate?

A: Long Run, implies that costs of merchandise and ventures, and of the components of creation that…

Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: