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

Q: What is Purchasing power parity Theory.

A: the Purchasing Power Parity (PPP) is an estimation that economists specialists use to look at the…

Q: how would this affect the US foreign exchange market ?

A: Imports: It refers to the goods and services that a country cannot produce due to which the country…

Q: Balance of payments includes foreign borrowing and lending, foreign aid, and investments. ) a) True…

A: Balance of payments is the records of monetary transaction incurred between nations during the year…

Q: Write a short note on the "Factors that influence exchange rates"

A: Exchange rate refers to the value of one currency for the purpose of conversing to another

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: kist

A: The balance of payments of a country is the difference between all money which is flowing into the…

Q: Write any three minutes of fixed exchange rate.

A: Under fixed exchange rate system the government has a right to set a fixed exchange rate for…

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: uncovered interest parity

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

Q: Explain fixed exchange rate in Malaysia.

A: A fixed exchange rate means a nominal exchange rate that is set jointly by the monetary authority…

Q: Elaborate the concept of Balance of Payments. Discuss its different accounts briefly.

A: Balance of payment (BOP) refers to the financial statement of all the transaction of a country with…

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: Imports of goods and services is not a source of demand for foreign exchange True/False

A: The requirements for foreign currency to cover the payments is refferd to be as the demand for…

Q: What is the position of Balance of payments (BOP) of India?

A: Introduction – Balance of payments (BOP) transactions include imports and exports of goods,…

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: 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: how the value of a currency under flexible exchange rates is determined?

A: Flexible exchange rates could be defined as exchange rates being determined by global demand and…

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: Explain supply and demand for exchange rates

A: The demand–supply framework enables you to predict the following period’s rate. once you understand…

Q: Exchange Rate Volatility?

A: (Q) Exchange Rate Volatility?

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: If there was an sudden change in exchange rates that resulted in fewer US Dollars being required to…

A: If there was an sudden change in exchange rates that resulted in fewer US Dollars being required…

Q: How does the export of Canadian goods to the US benefits the Canadian exchange rate?

A: Exports are incredibly vital to trendy economies because they provide individuals and corporations…

Q: Find the value of balance of trade if the value of exports are $61 and the value of imports are $8?

A: The value of a nation's export and import depend on the exchange rate of the domestic currency in…

Q: what does it mean to say that a currency appreciates? Depreciates? Becomes stronger? Becomes weaker

A: Currency is known as the medium of exchange. It is accepted as a form of payment and is famous for…

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: 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…