Distinguish between variable exchange rate and fixed exchange rate. State which is best for Jamaica. Give reasons for your answer.

Q: Explain why many industrialized countries do not often intervene in the foreign exchange market

A: The industrialized countries are countries that have a fully developed system of industries i.e. has…

Q: What policy would help the developing country maintain its fixed exchange rate?

A: Countries often take monetary policy measures to maintain their exchange rate system. A developing…

Q: Differentiate between foreign exchange and the foreign exchange rate.

A: Foreign exchange refers to the process of converting one currency into another currency for various…

Q: Discuss the four main functions of foreign exchange markets for global businesses.

A: Foreign exchange means the process of converting one currency into another, facilitating…

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: Under a system of fixed exchange rates, explain how a Caribbean government uses one (1) economic…

A: A fixed exchange rate is a monetary policy where the government sets a fixed value for the country's…

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: Describe the foreign exchange market and its components.

A: Foreign exchange market- it is a market, which is also known as forex and currency market. It is a…

Q: Find out any three saarc countries and find out their nominal exchange rate?

A: South Asian Association for Regional Cooperation (SAARC)  It is an intergovernmental organization…

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: 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: Discuss the Foreign Exchange Markets and its impact on the global economy

A: The key role of the forex market is to transfer funds for the settlement of payments from one…

Q: How does a fall in the exchange rate cause an increase in the cost of raw imported materials?

A: The import and export of a country are affected by the exchange rates.

Q: Consider the appreciation of a currency. What effects might this have on international companies…

A: International companies: Those companies whose business activities are touching other countries or…

Q: Effect of fiscal and monetary policy on exchange rate in Zimbabwe

A: The value of one currency stated in terms of another currency is referred to as the exchange rate.…

Q: If purchasing power parity between two countries were to hold, does this mean that the law of one…

A: Initially, it is important to know what  the Law of one price means. It can be stated as the rule…

Q: Despite the benefits of a Balance of Payments Surplus, countries do not strive to achieve it…

A: The balance of payment (BoP) account records all the international as well as national transactions…

Q: Which is suitable exchange rate regime for desirable international business?

A: Exchange rate shows the value of one currency in terms of other currency. The two exchange rate…