Impact of foreign exchange on the economy from "summary" of Oswaal NCERT One For All for UPSC & State PSC's Indian Economy Classes-9 to 12 (Old & New NCERT Edition) (For 2023 Exam) by Oswaal Editorial Board
The impact of foreign exchange on the economy is a crucial concept that affects various aspects of a country's economic performance. Foreign exchange refers to the exchange of one currency for another, which plays a significant role in determining a country's trade balance, inflation rate, and overall economic stability. When a country's currency strengthens against other currencies, it can lead to a decrease in the cost of imported goods. This, in turn, can lower inflation rates and improve the purchasing power of consumers. On the other hand, a weak currency can make imported goods more expensive, leading to higher inflation and reduced consumer spending. Moreover, fluctuations in foreign exchan...Similar Posts
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