Business Economics II Advertisement Disclaimer: Please note that these question banks are important questions to be done, however the whole syllabus must also be revised. Paper pattern:- Q1. Objectives (15 marks) Q2. Full length questions (2 sets of 2 questions each. Attempt any one set) Q3. Full length questions...
Introduction: Just like Managerial Economics 1, Managerial Economics 2 is all about application of economic theories but it deals with macro economics as compared to managerial economics 1 that dealt with micro economics. The difference between micro and macro economics is that micro economics deals with the economics on...
Meaning: The term ‘foreign exchange’ is, generally used to refer to foreign currencies. But the foreign exchange is also used to refer to the mechanism by which the curreny of one country is converted into the currency of another country. Need for Foreign Exchange: In the case of...
Reasons for the People to Acquire Foreign Country: I. To purchase goods and services from for other countries II. To purchase financial assets in foreign countries III. To send gifts abroad IV. To speculate on the value of foreign currencies.
Meaning of Foreign Exchange Rate: The rate at which the currency of one country is exchanged for the currency of another country is called the exchange rate or the rate of exchange. In other words the exchange rate is the price which paid in domestic currency for a...
Protectionist policy refer to that trade policy or commercial policy of international trade under which there will be deliberate imposition of restrictions on the movements of goods and services between countries with a view to safeguarding home industries or domestic industries or domestic industries from foreign competition.
Membership of the Fund: The IMF started functioning with an initial number of 44 members i.e., all the 44 members of the U.N.O. present at the Bretton Woods conference. The IMF has 151 members. New members may be admitted to the Fund at any time at the discretion of...
Floating exchange rate refers to the exchange rate which is determined by the conditions of demand for and supply of the foreign exchange in the exchange market. Advantages of Floating or Flexible Exchange Rate System: i. Under the flexible exchange rate system, foreign exchange market clears automatically...
I. Balance of payments: Balance of payments is one of the important factors influencing the exchange rate. For instance, if the balance of payments of a country is a surplus, the demand for the currency of that country in the exchange market will be higher than its supply. II....
Advantages of Fixed Exchange Rate System i. Fixed exchange rate system helps in the promotion of international trade and investment, as it prevents risk and uncertainty in transactions. ii. Fixed exchange rate system ensures that major economic disturbances, which will weaken the economic policies of member countries, do...
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