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प्रश्न
Explain the automatic mechanism by which BoP equilibrium was achieved under the gold standard.
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उत्तर
Under the gold standard system, gold was taken as a common unit for measuring other country’s currency. Thus, the value of a currency was defined in terms of gold. The exchange rate in an open market was determined by its worth in terms of gold. It was fixed in lower limits and upper limits, under which it was allowed to fluctuate. So, the exchange rate became stable under gold standard. All the countries maintained stock of gold to exchange currency.
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संबंधित प्रश्न
Should a current account deficit be a cause for alarm? Explain.
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i. current account
ii. unilateral transfer account
iii. capital account
iv. loan account
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Statement 2: Foreign Direct Investments in India will be recorded on credit side of capital account.
In the light of the given statements, choose the correct alternative:
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A BOT (Balance of Trade) deficit occurs when:
The Balance on Invisibles covers which of the following?
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