ECONOMICS
BALANCE OF PAYMENTS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equilibrium rete
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Fixed exchange rate
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Exchange rate
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Flexible exchange rate
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Detailed explanation-1: -Correct answer is Foreign exchange rate. The exchange rate is the price of one currency in terms of another currency. Exchange rates can be either fixed or floating. Fixed exchange rates are decided by central banks of a country whereas floating exchange rates are decided by the mechanism of market demand and supply.
Detailed explanation-2: -Exchange rate refers to the price of foreign currency in terms of the domestic currency.
Detailed explanation-3: -The exchange rate is the price of one currency in terms of the other.
Detailed explanation-4: -A currency swap, sometimes referred to as a cross-currency swap, involves the exchange of interest-and sometimes of principal-in one currency for the same in another currency.