Balance of Payments-Determination of Exchange Rate in a Free Market (CBSE Class-12 Economics): Questions 1 - 3 of 3

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 523 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 900.00 or

Question number: 1

» Balance of Payments » Determination of Exchange Rate in a Free Market

Appeared in Year: 2010

Short Answer Question▾

Write in Short

Give the meaning of ex-ante savings.

Question number: 2

» Balance of Payments » Determination of Exchange Rate in a Free Market

Appeared in Year: 2011

Short Answer Question▾

Write in Short

Define cash reserve ratio.

Question number: 3

» Balance of Payments » Determination of Exchange Rate in a Free Market

Essay Question▾

Describe in Detail

State any two problems of barter system of exchange. How does money solve them?

Explanation

The two problems of barter system of exchange are given below:

a. Both sale and purchase are generated together involving double coincidence of wants.

b. There is no common unit of exchange in a barter system so, exchange remains limited.

Use of money overcomes problem of barter system of exchange… (29 more words) …

Sign In