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Exchange Control: Exchange control means official intervention with the foreign exchange of a country. It is a system of rationing foreign exchange among competing demands for it, affected by controlling the receipts and payments thereof. The control of receipts aims at centralising the country's means of extremely payments in a common pool in the hands of its monetary authorities. Reserve Bank of India is the monetary authority in India. It facilitates judicious use of foreign exchange. The control of payments aims at restraining the demand for foreign exchange broadly in consonance with the national interests within the limits of available resources.
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OBJECTIVES After studying this unit, you should be able to: 1. Explain the meaning of exchange rate; 2. Describe various types of exchange risk; 3. Discuss the meas
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