Why did the value of the Indian rupee decline against that of the US dollar after the US Fed had announced that it would begin to wind down its economic stimulus program? A. Increase in US interest rate B. India's dependence on US capital C. US's money supply expansion D. India's restriction on foreign capital

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A: Facts in the given question: Reserve Bank of New Zealand believes the New Zealand dollar (NZD) is…

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A: Currency risk means is known as exchange rate risk. Currency risk means change in one currency in…

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A: Th question is based on the concept of Forex transactions.

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A: Premium is required for option purchases of currency.

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A: 1. During the 1980s, the cost of capital for U.S. firms averaged about 3.3 percentage points higher…

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A: Increase; appreciate.

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A: Fewer; appreciate.

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A: When there is a price rise, both of goods/services, is known as inflation.

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A: Inflation refers to the rise in price of goods and commodities in the country.

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A: Some countries have low interest rates and appreciating currencies because -

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A: Currency appreciation: When the value of a currency increases as against the other, then it is known…

Balance of Payments

BOP is categorized into the following three components: