Question
Explain any two merits of fixed exchange rate.
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Answer
Merits of fixed exchange rate are as follows:
- It ensures stability in the international money market.
- It also encourages international trade.
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Similar questions
Calculate National Income by (a) Income method and (b) Expenditure method from the following data:
| S.No. | Contents | ₹ (in crore) |
| (i) | Interest | 150 |
| (ii) | Rent | 250 |
| (iii) | Government Final Consumption Expenditure | 600 |
| (iv) | Private Final Consumption Expenditure | 1,200 |
| (v) | Profit | 640 |
| (vi) | Compensation of Employees | 1,000 |
| (vii) | Net Factor Income to Abroad | 30 |
| (viii) | Net Domestic Capital Formation | 340 |
| (ix) | Net Exports | (-)40 |
| (x) | Net Indirect Taxes | 60 |
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