Chapter 6 Part 1 - Foreign Exchange Rates

Chapter 6 Part 2 - Balance of Payment →
Economics Class 12
Macroeconomics

What are the Factors Affecting Exchange Rate under Flexible Rate System?

Last updated at April 16, 2024 by

Following factors affect exchange rates

  1. Demand of Foreign Exchange
  2. Supply of Foreign Exchange
  3. Income
  4. Speculation
  5. Interest Rates
  6. Purchasing Power theory

 

We have already studied about Demand and Supply in last page

Let's learn about other factors now

Factors affecting Exchange Rate under Flexible Rate System - Teachoo.JPG

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Transcript

Factors affecting Exchange Rate under Flexible Rate System Factor Supply of Foreign Currency Demand of Foreign Currency We have already studied Decrease Depreciation Increase Appreciation Decrease Appreciation Increase Depreciation Income Speculation Interest Rates Purchasing Power Theory These we will study now

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CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo