The modern theory regarding exchange rate determination is known as the supply-demand theory. Suppose there are only two countries, the USA and UK and two currencies, the dollar and the pound. How is the rate at which dollar is exchanged for pound (i.e., dollar price of pound) determined? Under this system the exchange rate fluctuates from day to day according [...]
The following article will guide you to learn about how disequilibrium in balance of payments be corrected. The balance of payments must always balance. It is a truism. But it only means that the two sides of the account must always show the same total. It really does so. But what does it imply? It implies only an equality of [...]
In this article we will discuss about:- 1. Role of Asian Development Bank 2. Operations of Asian Development Bank 3. Resources. Role of Asian Development Bank: It was formed to foster economic growth and co-operation in the region of Asia and the Pacific and to contribute to the acceleration of economic development of the developing countries of the region. The [...]