The following procedure is observed in India for the determination of Exchange Rate:- In theory terms exchange rate determination is explained by two main models: 1. Flexible/floating exchange rate model 2. Fixed/pegged exchange model 1. Flexible Exchange Rate Model: When we treat exchange as a price of any foreign currency, then we can use the tools of demand and supply [...]
In this article we will discuss about fixed or pegged and flexible or fluctuating exchange rate system. Fixed or Pegged Exchange Rate System: In the case of fixed or pegged exchange system, all the international transactions take place at the rate of exchange fixed by the monetary authority. The exchange rate is either fixed by the government through legislation or [...]
Here is an essay on ‘Exchange Controls’ for class 11 and 12. Find paragraphs, long and short essays on ‘Exchange Controls’ especially written for school and college students. Essay # 1. Introduction to Exchange Controls: The exchange controls, like other expenditure- switching policies, divert the domestic spending from the foreign produced goods and services to the home produced goods and [...]