Question
In a floating exchange rate regime, if the demand for a
country's exports increases, its currency will typically:Solution
- Under a floating exchange rate , the value of a currency is determined by market forces of demand and supply.
- An increase in demand for a country's exports  means foreign importers need more of the domestic currency to pay for those goods.
- This increases the demand for the domestic currency  in the foreign exchange market.
- With supply constant, increased demand leads to an appreciation  (increase in value) of the domestic currency relative to other currencies.
- Devaluation  is a deliberate policy action in a fixed or managed regime, not an automatic market outcome.
Anuj and Bishnu can complete a task together in 24 days, Bishnu and Raj can complete the same task together in 48 days, and Anuj ...
Ten men begin to do work. But after some days, four of them left the job. As a result, the job that could have been completed in 40 days is completed in...
- 'Karan', 'Ravi', and 'Deepak' together can complete a work in 24 days. 'Karan' and 'Ravi' together can complete the same work in 96 days. 'Deepak' alone ca...
Q can do a work in 15 days and R can do the two-third work done by P and Q together in a day. If R completes the work in 18 days, how many days will it ...
- A group of workers, all equally efficient, were assigned to complete a job in 16 days. However, 10 workers left the job at the end of each day. Despite thi...
A and B together can complete a job in 2 days. A alone takes x + 6 days to complete the job, while B alone takes x + 24 days to complete the same job. <...
Average speed of ‘A’ during a 22-hour journey is 22 km/h. If he covered the first 280 km of his journey at a speed of 20 km/h, then find the speed a...
'X' and 'Y' can complete a certain job together in 36 days. They worked together for 20 days, after which 'X' left, and 'Y' completed the remaining work...
A2 type ‘P’ pipes can fill a tank in 350 hours, while B2 type ‘Q’ pipes can fill the same tank in 504 hours. (10A × 6B) t...
The time taken by ‘A’ to build a wall alone is 50% more than the time taken by him to build it along with ‘B’. ‘B’ will take how much percen...
