The balance of payments records all economic transactions between a country and the rest of the world over a period of time, usually a year. It has two main components - the current account, which records the flow of goods, services, income, and unilateral transfers; and the capital account, which records the flow of financial assets and liabilities. The balance of payments must balance, with credits equal to debits. If the current account is in deficit, it requires a capital account surplus to balance the payments.
A fantastic PPT on the foreign exchange rate. The PPT includes meaning and concept of foreign exchange and foreign exchange rate, the systems of determining foreign exchange rate, depreciation of domestic, appreciation of domestic currency, devaluation and revaluation of domestic currency. This PPT also explain the role of RBI in managing the exchange rate by using the concept of managed floating. Just download it and make your concepts stronger. Happy Learning !!
A fantastic PPT on the foreign exchange rate. The PPT includes meaning and concept of foreign exchange and foreign exchange rate, the systems of determining foreign exchange rate, depreciation of domestic, appreciation of domestic currency, devaluation and revaluation of domestic currency. This PPT also explain the role of RBI in managing the exchange rate by using the concept of managed floating. Just download it and make your concepts stronger. Happy Learning !!
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International movements-meaning-Export & import of merchandise & services-International investment-International Payments, Rate of exchange, Economic integration
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
The Relation between Balance of Payment and Foreign Exchange Ratemohamedosman370
The Definition of the (BOP)
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The first bank in the modern sense in Afghanistan was established in April 1931 when Banke Millie Afghan (Afghan National Bank) was established. During its first eight years, this privately-owned institution served as a mono-bank for the country, combining central banking activities with commercial operations. In 1939, DAB was formally founded as a state owned central bank. In 1948, the Mortgage & Construction Bank was established as the first specialized bank, followed in 1955 by the Agricultural Development Bank. The same year, Pashtany Tejaraty Bank (Pashtun Commercial Bank) was started in response to the growing needs for trade finance. The 1970s was a dynamic period for the Afghan financial sector with the launching of the Industrial Development Bank of Afghanistan in 1973 and the Export Promotion Bank in 1975 with an increasing number of branches being set up in the main regional centers. However, as the political system was decisively moving to the left during that decade, the private banks were socialized during 1974–76. During the subsequent period of Soviet control of Kabul (1980–88), DAB and the banking system as a whole were transformed into the Soviet model.
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Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
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Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
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Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
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June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
2. • The balance of payment is a comprehensive
and systematic records of all economic
transaction between normal residents of a
country and rest of the world during an
accounting year.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
3. • Accounts of Balance of Payments:
• 1. Current Account: The current account
records export and import of goods and
services and unilateral transfers.
• 2. Capital Account: It records of all such
transactions between normal residents of a
country and rest of the world which relates to
sale and purchase of foreign assets and
liabilities during an accounting year.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
4. Components of Current Account Components of Capital Account
1. Visible items (import and export of
goods).
1. Foreign Direct investment.
2. Invisible items (import and export of
services).
2. Loans.
3. Unilateral transfers. 3. Portfolio investment.
4.Income receipts and payments from
and to abroad.
4. Banking capital transactions.
5. These are the transactions which do
not affect the assets or liabilities
position of the country.
5. These are the transactions which
affect assets or liabilities
position of the country.
6. It is a flow concept. 6.It is a stock concept.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
5. • Balance of trade is the net difference of
Import and export of all visible items between
the normal residents of a country and rest of
the world.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
6. • Autonomous items are those items of balance of
payment which is related to such transaction as
are determined by the motive of profit
maximisation and not to maintain equilibrium in
balance of payments. These items are recorded
as a first items before calculating deficit or
surplus in balance of payment a/c.
• These items are generally called ‘Above the Line
items’ in balance of payment.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
7. • Accommodating item refers to transactions
that take place because of other activity in
Balance of Payment. These transactions are
meant to restore the Balance of Payment
identity. These items are generally called
‘Below the Line items’.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
8. • Deficit of Bop Account: When total inflows of
foreign exchange on account of autonomous
transactions are less than total outflows on
account such transaction then there is a
deficit in Bop.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
9. • Foreign exchange rate refers to the rate at
which one unit of currency of a country can be
exchanged for the number of units of currency
of another country. In simple words, we can
say that the price of one currency in terms of
other currency is known as foreign exchange
rate or exchange rate.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
10. • SYSTEM OF EXCHANGE RATE:
• 1. Fixed exchange rate
• 2. Flexible exchange rate.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
11. Fixed exchange rate
• In fixed exchange rate system, the rate of exchange is
officially fixed or determined by Government or
Monetary Authority of the country.
• Merits of Fixed Exchange Rate
• (i) Stability in exchange rate
• (ii) Promotes capital movement and international
trade.
• (iii) No scope for speculation
• (iv) It forces the govt. to keep inflation in check.
• (v) Attracts foreign capital.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
12. • Demerits of Fixed Exchange Rate
• (i) Need to hold foreign exchange reserves.
• (ii) No automatic adjustment in the ‘Balance
of payments.’
• (iii) It may result in undervaluation or
overvaluation of currency.
• (iv) It discourages the objective of having free
markets.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
13. Flexible exchange rate
• in a system of flexible exchange rate (also
known as floating exchange rates), the
exchange rate is determined by the forces of
market demand and supply of foreign
exchange.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
14. The demand of foreign exchange have the inverse relation
with flexible exchange rate. If flexible exchange rate rise the
demand of foreign exchange falls. Vice versa.
Sources of Demand for Foreign Exchange
(a) To purchase goods and services from the rest of world.
(b) To purchase financial assets (i.e..,to invest in bonds and
equity shares) in a foreign country.
(c) To invest directly in shops, factories, buildings in foreign
countries.
(d) To send gifts and grants to abroad.
(e) To speculate on the value of foreign currency.
(f) To undertake foreign tours.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
15. The supply of foreign exchange have the positive relation
with foreign exchange rate. If foreign exchange rate rises the
supply of foreign exchange also rises and vice versa.
Sources of Supply of Foreign Exchange
(i) Direct purchase by foreigners in domestic market.
(ii) Direct investment by foreigners in domestic market.
(iii) Remittances by non-residents living abroad.
(iv) Flow of foreign exchange due to speculative purchases by
N.R.I.
(v) Exports of goods and services.
(vi) Foreign direct investment as well as portfolio investment
from rest of the world.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
16. Merits of Flexible Exchange Rate
(i) No need to hold foreign exchange reserves
(ii) Leads to automatic adjustment in the ‘balance of
payments’.
(iii) To enhances efficiency in resources allocation.
(iv) To remove obstacles in the transfer of capital and
trade.
(v) It eliminates the problem of undervaluation or
overvaluation of currency.
(vi) It promotes venture capital in the form of foreign
exchange.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
17. Demerits of Flexible Exchange Rate
(i) Fluctuations in future exchange rate.
(ii) Encourages speculation.
(iii) Discourages international trade and
investment.
(iv) It creates a situation of market instability
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
18. • Determination of Equilibrium Foreign Exchange
Rate: Equilibrium FER is the rate at which demand for
and supply of foreign exchange is equal. Under free
market situation, it is determined by market forces i.e.,
demand for and supply of foreign exchange. There is
inverse relation between demand for foreign exchange
and exchange rate. There is direct relationship b/w
supply of foreign exchange and exchange rate. Due to
above reasons demand curve downward sloping and
supply curve is upward sloping curve Graphically
intersection of demand Curve and supply curve
determines the equilibrium foreign exchange rate.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
20. • Devaluation of a currency: When government
or monetary authority of a country officially
lowers the external value of its domestic
currency (in respect of all other foreign
currency) is called devaluation of a currency. It
takes place by government order under fixed
exchange rate system.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
21. • Revaluation of a currency: When government
or monetary authority of a country officially
raises the external value of its domestic
currency is called revaluation. It takes place by
government order under fixed exchange rates
system.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
22. • In currency depreciation there is a fall in the
value of domestic currency, in term of foreign
currency due to change in demand and supply
of the currency under flexible exchange rate
system.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
23. • In currency appreciation, there is a rise in the
value of domestic currency in terms of foreign
currency due to change in demand and supply
of the currency under flexible exchange rate
system.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
24. • Managed floating system is a system in which
the central bank allows the exchange rate to
be determined by market forces but
intervenes at times to influence the rate.
When central bank finds the rate is too high, it
starts selling foreign exchange from its reserve
to bring down it. When it finds the rate is too
low. It starts buying to raise the rate.
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,
25. • A dirty float is a floating exchange rate where
a country's central bank occasionally
intervenes to change the direction or the pace
of change of a country's currency value. In
most instances, the central bank in a
dirty float system acts as a buffer against an
external economic shock before its effects
become disruptive to the domestic economy.
A dirty float is also known as a "managed
float."
Madan Kumar
M.A.,M.A.,B.Ed.,M.Phil.,M.B.A,