If there are no costs or other barriers associated with the movement of goods or services across countries, the price of each product should be the same in each country, after making appropriate currency conversions. It is called ____________ in Economics.

Related MCQs

• The rate of exchange of two currencies on the basis of exchange quotes of other pairs of currencies are derived when a quote of home currency (or desired currency) to any other currency is not available in the Foreign Exchange market is called ____________.
• An act of buying currency in one market at a lower price and selling it in another at higher price resulting in equilibrium in exchange rates of different currencies is called _________________.
• There is a close link between the interest rates in two countries and the forward rate premium or discount. The theory about this is :
• When the exposed position in a foreign currency is covered through borrowing or lending in the money market, it is called ______________.
• Which one of the following is NOT referred to as ‘Major’ or ‘Hard’ Currency?
• A financial instrument that provides its holder a right but no obligation to buy or sell a pre-specified amount of a foreign currency at a pre-determined rate is referred to as ____________
• Market making is a unique concept of which stock exchange of India?
• A statement demonstrating the movement of funds into and out of the business during the course of accounting period is known as ___________
• When an American Company acquires a division or unit of Indian company, the US is said to be a ______________ Country.
• The concept of Credit Rating was originated in which country?