Tag Archives : trade deficit

Factors Influencing The U.S. Dollar

Factors Influencing The U.S. Dollar

The value of dollar is influenced by a lot of factors. The decision of buying and selling of dollar depends on the conditions prevailing in the economy of the country. Under favorable conditions, the demand for dollar is high and the situation is reverse if the economic conditions are unfavorable.

The Currency Market

The Currency Market

Even though the world is now globalized and has undergone various technological innovations, the human aspect in these markets is still quite apparent. This means, that these markets work on the order of those individuals which plan to earn a profit by them. As long as these individuals find more profit and less cost, they would exist for a time enough for them to achieve it.

Exchange Rates: Balance of Payments Model & Asset Market Model

Exchange Rates: Balance of Payments Model & Asset Market Model

In this article I will explain you the balance Balance of payments model and Asset market model.A nation that is facing a trade deficit will experience reduction in its foreign exchange reserves and due to this the value of its currency will…

What do you understand by Fixed Exchange Rate?

What do you understand by Fixed Exchange Rate?

A fixed exchange rate, is sometimes also referred to as a pegged exchange rate. It is a type of exchange rate regime in which a value of one currency is matched to the value of another single currency or to a group of other currencies, or it may also be matched to…

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