How can Reserve Bank of India help in bringing down the Foreign Exchange Rate which is very high?
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When the Reserve Bank of India announces an increase of the Cash Reserve Rate, what does it mean?
(a) CRR or the Cash Reserve Ratio is that ratio of the total deposits held by a bank which it has to keep with the central bank of country.
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The lowering of Bank Rate by the Reserve Bank of India leads to (a) more liquidity in the market
(a) Low bank rate means more liquidity in the market.
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Bank Rate implies the rate of interest: (a) paid by the Reserve Bank of India on the Deposits of Commercial Banks
(d) Bank Rate is that rate of interest at which central bank of a country provides refinancing facilities to commercial banks. The bank rate, a benchmark rate at which RBI...
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Consider the following statements: 1. The repo rate is the rate at which other banks borrow from the Reserve Bank of India.
(a) Repo Rate is the rate at which commercial banks borrow funds from RBI. A reduction in the repo rate will help banks to get money from the central bank...
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Population explosion is associated with? (a) high birth rate low death rate (b) high birth rate and high death rate
(a) high birth rate low death rate
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How can increase in Foreign Direct Investment affect the price of foreign exchange?
Foreign Direct Investment raises the supply of foreign exchange leading to downward influence on the price of foreign exchange.
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Foreign Exchange Transactions dependent on other Foreign Exchange Transactions are called: (choose the correct alternative)
(d) Accommodating transactions.
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Why are foreign exchange rate and demand for foreign exchange inversely related? Explain.
When foreign exchange rate rises, imports become costly for the domestic consumers. This reduces demand for imports causing fall in demands for foreign exchange (When foreign exchange rate falls, opposite...
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Why are foreign exchange rate and supply of foreign exchange directly related? Explain.
When foreign exchange rate rises, domestic goods becomes cheaper for foreign buyers. This raises demand for exports causing rise in supply of foreign exchange (when foreign exchange rate falls, domestic...
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How is exchange rate determined in the Foreign Exchange Market? Explain.
It is determined by the force of demand and supply of foreign exchange. The price and demand for foreign exchange are inversely related and supply and price of foreign exchange...
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