Why Pakistan stopped using pegged exchange rate system and started using free float system? What advantages and disadvantages are expected if Pakistan adopt pegged system again?

Q: What are foreign exchange markets? Why does the State Bank of Vietnam intervene in the foreign…

A: When economies are open to trade, they interact in international market at a specific exchange rate.

Q: point to explain which exchange rate is best suitable for janaica economy

A: An exchange can be defined as the value of one currency in terms of the value of another currency.…

Q: Discuss the reasons for keeping foreign exchange reserve. What are the strategies of managing…

A: Foreign exchange reserves are resources hung on hold by a central bank in foreign monetary…

Q: In this system, there is no government intervention that will affect the exchange rates. a. Managed…

A: The rate at which one currency can be exchanged for another currency is known as an exchange rate.

Q: Which of the following are not a part of capital Account of Balance of Payment a. Foreign Loans b.…

A: As the name implies, a country's balance of payments (BOP) shows how much money has flowed from one…

Q: WHAT IS THE IMPORTANCE OF EXCHANGE RATE IN OUR ECONOMY

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: In your opinion what are the reason devalution of Pakistani currency against foreign currency ?

A: Devaluation of currency is the reduction in the value of a country’s local currency as compared to…

Q: What variable makes the relevance/link between loanable funds market and market for foreign-currency…

A: Foreign exchange, is the transformation of one country's cash into another. In a free economy, a…

Q: intebrnational monetary fund

A: The International Monetary Fund (IMF) is an international monetary organization installed in with…

Q: K Using the currency cross rate table, convert US$298.00 to Canadian dollars. Canadian U.S. Euro…

A: An exchange rate refers to a relative price of one currency determined to be in the terms of another…

Q: How do wars and pandemics affect a country's nominal exchange rate, interest rate, and production?

A: The nominal exchange rate basically determines that how much local money is required to acquire…

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: when a domestic investor buys a foreign asset, the financial account would rise, stay the same or…

A: When a domestic investor buys a foreign asset ,  the financial account status can be explained as…

Q: When you are selling Omani Rial for getting US Dollar it is related to? a. Interest rate b.…

A: Given:  Selling of Omani Rial to get US dollar.

Q: How much is the difference between the cross-exchange rates for Rupees (India) and Euro (europe)…

A: A cross rate is a quote on the foreign exchange market between two currencies (not including the US…

Q: Why some countries are using thin film interference effect in the currencies?

A: When a ray of light falls on a currency, the light gets reflected partially from the top and the…

Q: Find any three saarc countries, CPI from internet, and then find out real exchange rate.

A:

Q: Explain the manged floating system and free floating exchange rate system

A: Here, it is required to explain the concept of managed floating system and free floating exchange…

Q: What is the link between the foreign exchange market and the real economy

A: The foreign exchange market is the market where countries can buy, sell, exchange, and speculate the…

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: Why does purchasing-power parity theory NOT hold at all times? Select one: O a. because prices are…

A: Purchasing-power parity theory states that the exchange rate between two countries should adjust to…

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: In Bretton Wood system, which of the following institutions cannot be included in the international…

A: Answer - Need to find:- In Bretton Wood system, which of the following institutions cannot be…

Q: Why would a nation “dollarize”—that is, adoptanother country’s currency instead of having its own?

A: The concept that is being adopted by all the countries that are developing is known as…

Q: Write the difference between capital account and current account

A: Concept of balance on current account and balance on capital account are always interrelated to each…

Q: What do you think is a better system – fixed exchange rate system or flexible? Why?

A: In the international market, fixed and flexible are two types of exchange rate system that are used…

Q: State the components of capital account of balance of payment in an economy?

A: As per the given question, Balance of payment usually records the transaction which are related to…