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Vibhav
Subject: Economics
, asked on 23/8/17
In this answer which I have got from Meritnation, it is written that purchase of own currency is a credit as it leads to OUTFLOW OF FOREIGN EXCHANGE
However, isnt inflow of foreign exchange a credit and outflow of foreign exchange a debit???
Answer
1
Vibhav
Subject: Economics
, asked on 23/8/17
Difference between Managed Floating Exchange Rate System and Crawling Peg System????
Answer
2
Vibhav
Subject: Economics
, asked on 23/8/17
Can we say that even in Managed Floating System the value of Currency is pegged to an external currency?????
That is what this example indicates
Answer
1
Vibhav
Subject: Economics
, asked on 23/8/17
Under Fixed Exchange Rate system, if the value of INR is pegged to USD in such a manner that $1 = 50 INR
Does it mean that :
(1) $1 will always be equal to 50 INR under all circumstances irrespective of market conditions and forces of supply and demand
OR
(2) The relative value of INR and USD can change due to market conditions and forces of supply and demand, but the Central Bank via selling and buying of foreign currency in the market will ensure that $1 = 50 INR
Which alternative is correct (1) or (2)????
If (2) is correct then what is the difference between Managed Floating System and Fixed Exchange Rate System???
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
In fixed exchange rate system, if the exchange rate is fixed by the government or tied (pegged) to another currency/gold or any other external standard, then how will the exchange rate fluctuate????
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
In fixed exchange rate system, the value of currency is pegged to an 'external standard'
Can the value of this external standard fluctuate and change???
What will be the impact of fluctuation in this external standard on the value of currency??
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
Please explain the underlined lines???
How is purchase of own currency a credit and sale a debit???
My teacher says that when we purchase our own currency , there is outflow of foreign currency which is a debit and inflow of our currency which is a credit.
But in case of BoP dont we look at the transactions from the point of view of foreign currency and not that of domestic currency???
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
What is the difference between Pegging and Parity value of currency????
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
please explain me the meaning of the paragraph on bretton woods system???
what is meant by the value of currency is lower/higher as compared to value of USD???
explain using Numerical examples
if the value of USD goes up then will the value of all currencies pegged to USD will also go up???
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
'In case value of currency is lower as compared to value of USD' what does this line mean???
Explain using numerical example.
Does this mean that ₹1 = $1 in all cases????
Answer
1
Vibhav
Subject: Economics
, asked on 22/8/17
As per Gold Standard, value of currency is linked to Gold. For example $1 = 5 gm Gold
If the price of Gold fluctuates, what will happen to the value of currency?????
Also inder this system, can the value of currency change like $1 = 7gm of Gold???
If yes, Then how and who could change it???
Answer
1
Vibhav
Subject: Economics
, asked on 8/8/17
Kindly explain the underlined lines in Sandeep Garg Macroeconomics Page 12.8 under 'Official Reserve Transactions'???
Answer
1
Vibhav
Subject: Economics
, asked on 7/8/17
what are official reserve transactions????
why is "purchase of own currency a credit and sale of own currency a debit in BoP"????
Shouldnt it be the opposite??
Answer
2
Kalyan Hazra
Subject: Economics
, asked on 29/7/17
PLEASE CHECK THE ANSWER
Answer
2
Vibhav
Subject: Economics
, asked on 18/7/17
Kindly explain the concepts of Pegging and Parity Value in detail and also the difference between the 2???
Answer
1
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What are you looking for?
However, isnt inflow of foreign exchange a credit and outflow of foreign exchange a debit???
That is what this example indicates
Does it mean that :
(1) $1 will always be equal to 50 INR under all circumstances irrespective of market conditions and forces of supply and demand
OR
(2) The relative value of INR and USD can change due to market conditions and forces of supply and demand, but the Central Bank via selling and buying of foreign currency in the market will ensure that $1 = 50 INR
Which alternative is correct (1) or (2)????
If (2) is correct then what is the difference between Managed Floating System and Fixed Exchange Rate System???
Can the value of this external standard fluctuate and change???
What will be the impact of fluctuation in this external standard on the value of currency??
How is purchase of own currency a credit and sale a debit???
My teacher says that when we purchase our own currency , there is outflow of foreign currency which is a debit and inflow of our currency which is a credit.
But in case of BoP dont we look at the transactions from the point of view of foreign currency and not that of domestic currency???
what is meant by the value of currency is lower/higher as compared to value of USD???
explain using Numerical examples
if the value of USD goes up then will the value of all currencies pegged to USD will also go up???
Explain using numerical example.
Does this mean that ₹1 = $1 in all cases????
If the price of Gold fluctuates, what will happen to the value of currency?????
Also inder this system, can the value of currency change like $1 = 7gm of Gold???
If yes, Then how and who could change it???
why is "purchase of own currency a credit and sale of own currency a debit in BoP"????
Shouldnt it be the opposite??