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Balance of payments account:
The foreign exchange market is an organizational setting within which individuals, business firms, banks etc buy and sell foreign currency. It has no centralised meeting place and not limited to one country.A fixed exchange rate regime is where the external value a country’s currency is determined by explicit government policy and fixed at a certain amount of the domestic currency per unit of foreign currency.
Periodic changes in the exchange rate by government are described as devaluation or revaluation Devaluation refers to the deliberate reduction in the external value of a domestic currency. On the other hand, revaluation is a deliberate increase in the value of a country’s currency relative to other currencies.
Individual Demand Substitutes and Complements 1) The two goods are considered substitutes if an increase (decrease) in price of one lead to an increase (decrease) in quant
Price | Quantity demanded _________________________ 0 250 50 200 100 150 150 100 200 50 250 0 A) Calculate Lorie''s profit-maximizing output, price, and economic profit. B) Do yo
an emission fee levied against polluting firms will tend to shift the supply/demand curve of the firm/product to the left/right?
1. Discuss how banks make money, and are structured in respect to Asset, Liability and Capital Management – give examples.
Problem 1: (a) Explain the common set of problems that developing countries usually face. (b) In your opinion, which of the problems described in part (a), are more signifi
Analyse the possible effects of speculation on exchange rates. Definition of speculation in currencies as betting on the appreciation/depreciation of a given currency. E
Private and Social Benefits Private benefits are those which accrue to an individual. They may be both monetary and non monetary, direct and indirect. Earnings of an individua
Marketing Economies: These are derived from the bulk purchasing of inputs and bulk distribution of outputs. A large firm is able to buy its raw materials in larger quantities
Define Nash equilibrium
consumer choice involving risk
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