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Describe the balance of payments identity and discuss its implications under the fixed and flexible exchange rate regimes.Answer: The balance of payments recognize holds that the combined balance on the current and capital accounts must be equal in size, but reverse in sign, to the change in the official reserves: BCA + BKA = -BRA. Within the pure flexible exchange rate regime, central banks do not engage in official reserve transactions. So, the overall balance should balance, that is BCA = -BKA. Within the fixed exchange rate regime, though, a country can have an overall BOP surplus or deficit since the central bank will accommodate it via official reserve transactions.
Q. Can you explain about Overdrafts? Overdraft means an agreement with a bank by which a current account-holder is allowed to withdraw more than the balance to his credit up to
COST OF CAPITAL A project's Cost of Capital is the smallest amount of acceptable rate of return/required rate of return on funds committed to the project. It is a compensation
discuss the applicability of an operation cycle in a vegetation business
Question 1: i) Activity Based Costing is better than the Traditional Product Costing. Discuss, by making use of empirical evidence ii) The replacement of cash-based accounti
QUESTION 1 (a) What do you understand by the term Civil Society Organisations? (b) Distinguish between sectional and promotional groups. Give examples to support your answer
Assignment Instructions You are to survey the annual reports of five listed companies in the extractive industry sector from ASX or other sources for the most recent year possib
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Structure and Participation of Hedge Funds: The typical structure for a Hedge Fund is to facilitate the tax concerns of investors and fund managers. Basically, there are two or
Investor's Considerations As mentioned above, every investor before taking an investment decision, must consider the following aspects: Risk: The primary consideration for t
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