Download Free PDF of Notes for CBSE Class 12 Open Economy Macroeconomics Chapter 6
Revision Notes for Class 12 Open Economy Macroeconomics Chapter 6 of Macroeconomics are provided here as per the new syllabus prescribed by CBSE. The Revision Notes are very helpful for students in their preparation for examinations. Students should go through these important questions of Chapter 6 - Open Economy Macroeconomics with solutions to score better in the exam.
The subject matter experts at Vedantu make these notes for Chapter 6 Macroeconomics Class 12 to enable students to manage their time better by giving them accurate solutions. By availing these Open Economy Macroeconomics Class 12 revision notes, students can be sure of getting good grades as these are based on the updated CBSE curriculum.
In the Chapter of Open Economy Macroeconomics, important concepts of Open Economy are discussed. These revision notes are prepared by our subject matter experts in easy language so that students can grab the complex concepts of Open Economy Macroeconomics easily through solutions.
FAQs on Open Economy Macroeconomics Class 12 Notes CBSE Macro Economics Chapter 6 [Free PDF Download]
1. What are some of the merits of a Fixed Exchange Rate System?
Some of the benefits of a fixed exchange rate system are:
It provides stability to the exchange rate.
It encourages international trade and capital movement.
It also attracts foreign capital.
There is no speculation in a Fixed Exchange Rate system.
It puts pressure on the government to keep a check on inflation.
2. What are some of the sources of supply of foreign exchange?
Some of the main sources of foreign exchange are:
When foreigners directly buy commodities in the domestic market.
When foreign companies or businesses invest directly in the domestic market.
When remittances are done by NR (non-residents) who are living out of their countries.
When non-residents make speculative purchases in the domestic market, it leads to the flow of foreign exchange.
By exporting goods and services.
Foreign direct investments.
Portfolio investment from ROW (rest of the world).