In your view which exchange rate regime is beneficial for the countries and why?

Q: What is meant by Foreign Exchange Markets?

A:

Q: Explain pegged exchange rates

A: Exchange rate is the value of one country’s currency in exchange of other country’s currency.

Q: What are forward contracts? How can they beused to manage foreign exchange risk?

A: Risk refers to the uncertainty regarding the implications of any activity.

Q: What can be understood from Foreign Exchange Rates?

A: Foreign exchange rate: A foreign exchange rate is the comparative value among two currencies. Merely…

Q: Discuss how changes in the expected exchange rate affects current exchange rate

A: The rate at which one country currencies is exchanges with the currencies of another country, such…

Q: Define the term exchange rate?

A: There are two types of exchange rates: floating and fixed. The floating exchange rate is determined…

Q: Give full definition of the market for foreign exchange.

A: The cross-border flow of money gives rise to foreign exchange. Foreign exchange refers to foreign…

Q: Why do nations use a crawling peg exchange rate system? What role does speculation play in this…

A: A crawling peg is a rate zone within which a fixed-rate exchange rate currency is permitted to vary.…

Q: Define Foreign exchange risk.

A: The term foreign exchange risk is defined as, the risk of an ominous variation in the settlement…

Q: What is foreign trade balance?

A: Answer: A foreign trade balance is nothing but the net dollar value of commodity exports minus…

Q: how would market forces be affected? Does arbitrage opportunity destabilize foreign exchange…

A: Arbitrage is nothing but buying in one market with some price and selling the same with other market…

Q: Define spot rate (foreign exchange)

A: Spot rate (foreign exchange):  Spot rate is the present exchange rate at which a pair of currency…

Q: What factors create a foreign exchange gain on a foreign currency transaction? What factors create a…

A: Factors creating foreign exchange Gains or losses: 1) Having an exposure of receivables and payable.…

Q: Which of the following factors influences the spread between forward and spot rates? a. which…

A: Spot rate is the current rate of the stock or bond or currency and forward rate is the price that is…

Q: Explain the fundamentals of International Trade ?

A: International trade refers to the exchange of goods and services between and across the countries.…

Q: Would exchange rate changes always increase the risk of foreign investment

A: No, it is not necessary that the exchange rate changes always increse the risk of foriegn…

Q: Explain the relative merits of fixed and floating exchange rate regimes. From the perspective of an…

A: An exchange rate regime seems to be the method through which a nation's or currency union's monetary…

Q: Do you think Balance of Payment and its different components have any role in determining the…

A: Balance of Payments: It is the difference in the money flowing in the country & the money…

Q: Critically evaluate the role of exchange rate systems in influencing FDI and trade levels.

A: Foreign direct investment:  One of the primary methods of contemporary capital internationalization,…

Q: explain what economists attribute so much attention to Real Exchange Rates? Provide an answer that…

A: Exchange rates are the rates in which one currency could be exchanged into the currency of another…

Q: What is an exchange rate? What is the differencebetween direct and indirect quotations? Whatis a…

A: Introduction: An exchange rate is the value of one currency stated in terms of another currency, or…

Q: What is foreign exchange rate?

A: The foreign exchange rate is the relative representation of domestic currency in terms of value of…

Q: exchange rate regime,

A: The exchange rate refers to the price of the money of a country and relates to the value of…

Q: Discuss the condition under which exchange rate changes may actually reduce the risk of foreign…

A: Exchange rate changes are largely unpredictable. Exchange rates are nonstationary and may deviate…

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

A: The exchange rate between two currencies is the number of units of one currency per unit of the…

Q: From your understanding, discuss the advantages and disadvantages of a fixed change rate regime.…

A: The fixed exchange rate regime is an exchange rate that is determined by the government and it will…

Q: Why the single currency eliminates exchange rate fluctuation and why is better for the countries to…

A: Single Currency refers to the currency used by more than one country. In other words, when more than…

Q: What is the importance of Foreign Exchange Market?

A: Foreign exchange markets commonly known as Forex markets are mainly concerned with purchasing and…

Q: What are the advantages or the disadvantages of hedging with currency options as opposed to future…

A: Hedging is used to insulate the investor of the risks of currency fluctuations in an international…

Q: What are different types of exchange rate systems. What type of exchange rate system is better in…

A: Exchange rate refers to the rate at which domestic currency can be valued in terms of another…

Q: llustrate the different factors that determine future foreign exchange rates in the long run

A: The question is based on the concept of determination and determinants of foreign exchange rate  in…

Q: Explain the need for and problems associated with forecasting foreign  exchange rate

A: An exchange rate forecast indicates the expectation about future value of exchange rates at a future…

Regulations Of Foreign Exchange Market