Notes and Study material for Exams
The Dance of Supply and Demand: Understanding Floating Exchange Rates The global economy is a complex web of interconnected markets, and one of the most crucial elements in this web is the exchange rate. This seemingly simple number, representing the value of one currency against another, holds immense power, influencing trade, investment, and even the … Read more
Unveiling the Nuances: Real Effective Exchange Rate (REER) vs. Nominal Effective Exchange Rate (NEER) The exchange rate, the price of one currency in terms of another, plays a crucial role in international trade and finance. While the nominal exchange rate captures the direct price comparison between two currencies, it fails to account for the relative … Read more
closed-economy: Here is a list of subtopics related to open-economy and closed-economy: Open economy Trade Comparative advantage Absolute advantage Terms of trade Capital flows InvestmentInvestment
The Indian Council for Cultural Relations: A Global Ambassador for Indian Culture The Indian Council for Cultural Relations (ICCR), established in 1950, stands as a testament to India’s commitment to fostering cultural exchange and understanding on a global scale. As a premier cultural organization, the ICCR plays a pivotal role in promoting India’s rich heritage, … Read more
Monetary Policy is the process by which the monetary authority of a country controls the Government Bonds, it is said to be engaging in which of the following? (A) Open market operations (B) Discount rate (C) Reserve requirement (D) Fiscal policy When the Federal Reserve sells government bonds, it is said to be engaging in … Read more
Navigating the Global Tax Landscape: A Guide to Double Taxation Avoidance Agreements (DTAA) The globalized economy has fostered a complex web of international business transactions, leading to a potential for double taxation â a situation where the same income or capital is taxed twice by different countries. To mitigate this risk and promote cross-border investment, … Read more
The following are subtopics of Nominal Exchange Rate: Nominal exchange rate definition Nominal exchange rate formula Nominal exchange rate determinants Nominal exchange rate effects Nominal exchange rate policy Nominal exchange rate forecasting Nominal exchange rate risk Nominal exchange rate regime Nominal exchange rate misalignment Nominal exchange rate volatility Nominal exchange rate index Nominal exchange rate … Read more
The Nominal Effective Exchange Rate (NEER): A Key Indicator of International Competitiveness The Nominal Effective Exchange Rate (NEER) is a crucial economic indicator that measures the value of a country’s currency against a weighted average of other major currencies. It provides a comprehensive view of a country’s international competitiveness by reflecting the relative price of … Read more
The Capital Account Deficit: A Deep Dive into the Dynamics of Global Finance The global economy operates on a complex web of interconnected financial flows. One crucial aspect of this intricate system is the capital account, which tracks the movement of financial assets between countries. When a country experiences a capital account deficit, it means … Read more
Balance of Payments is a systematic record of all economic transactions undertaken by residents of one country i.e. households, firms and the government with their counterparts in rest of the world. It consists of: 1. Current Account, 2. Capital Account and 3. Reserve Account. The Current Account covers transactions in goods and Services and transfers … Read more