According to _ theory, the exchange rate between two currencies is determined by their purchasing power.

Related MCQs

• According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by_                      
• Exchange rate between two currencies is based on     _ __
• Flexible exchange rate system, the exchange rate is determined by _     
• When supply of foreign exchange is increased given the demand for foreign exchange, the rate of exchange _.
• Transaction where the exchange of currencies take place on the same date is known as
• Transaction in which exchange of currencies take place at a specified future date, subsequent to spot date is known as,
• The purchasing power parity theory the difference in the quality of goods.
• Which of the following is not an assumption of the Purchasing Power Parity theory? _                      
• Purchasing Power Parity Theory considers that goods in different countries are _         
• When demand for foreign exchange increases, the exchange rate _.