Theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels.

Related MCQs

• _________ theory states that the exchange rate between currencies of two countries should be equal to the ratio of the countries price levels.
• ________ theory states that exchange rate between two currencies is directly affected by their interest rates.
• __________ is a standardized contract to exchange one currency for another at a special date in the future at a price (exchange rate) that is fixed on the purchase date.
• Under Exchange rate system, there is no interference of monetary authorities to decide exchange rate.
• In Spot market, exchange of currencies take place on basis.
• In Spot market, exchange of currencies take place on ___________
• _________ deal in currencies to benefit from movements in currency exchange markets.
• The world’s major trading currencies, which are free to float against each other, include all of the following except
•                is a market where foreign currencies are bought & sold.
• The world’s major trading currencies, which are a free to float against each other, include all of the following except__________________