Which exchange rate measures the average relative strength of a given currency with respect to other currencies without eliminating the effect of change in price?
- Nominal exchange rate.
- Nominal effective exchange rate.
- Real exchange rate.
- Real effective exchange rate.
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- Nominal effective exchange rate.
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Similar Questions
- 1View SolutionWhat will be the effect of appreciation of domestic currency?
- Imports will fall and exports will rise.
- Both exports and imports will fall.
- Imports will rise and exports will fall.
- Both exports and imports will rise.
- 2View SolutionIncrease in the value of domestic currency by the government is called _______.
- depreciation.
- devaluation.
- revaluation.
- appreciation.
- 3View SolutionThe supply of foreign exchange comes from ________.
- the foreigners purchasing home country's goods and services through exports.
- the foreigners who invest in home country through joint ventures or through financial market operations.
- currency dealers and speculators.
- all of them.
- 4View SolutionReduction in the value of domestic currency by the government is called ______.
- depreciation.
- revaluation.
- devaluation.
- appreciation.
- 5View SolutionWhich function of foreign exchange market protects against the foreign exchange risk?
- Credit function.
- Hedging function.
- Transfer function.
- All of them.
- 6View SolutionBalance of Payments deficit is calculated by taking into account the _______ only.
- accommodating transactions
- autonomous transactions
- unilateral transactions
- None of the above
- 7View SolutionWhich is not a part of income receipts and payments from/to abroad in BoP account?
- Profits.
- Grants.
- Interest.
- Dividends.
- 8View SolutionWhich items are excluded in BoT, but included in BOP?
- Visible items.
- Invisible items.
- Private capital.
- Both (b) and (c).
- 9View SolutionThe exchange rate determined by the free play of the forces of demand and supply of foreign exchange is:
- Flexible Exchange Rate.
- Fixed Exchange Rate.
- Managed Floating.
- None.
- 10View SolutionMatch the following.
Codes: I II III IV1Visibles(i)Foreign investment and borrowing2Invisible(ii)Transportation and communication3Capital account(iii)Car and mobiles4Unilateral transfers(iv)Grants and donations- (ii) (i) (iii) (iv)
- (iii) (ii) (i) (iv)
- (iii) (iv) (ii) (i)
- (i) (ii) (iii) (iv)