Ask Question
BusinessBusiness
14 May, 18:26

What does it mean to say that, at an exchange rate of 1 USD = 40 INR, the U. S. dollar is undervalued and the Indian rupee is overvalued ?

+1
Answers (1)
  1. 14 May, 21:42
    0
    The US dollar is worth more value than INR.

    Explanation:

    The US dollar is worth more value than INR under flexible exchange rate system, quantity of dollar supplied exeed the quantity of dollar demanded. There are multiple factors which affect the valuation of currency. One of the factor is purchasing power parity, as it show the strength of domestic economy. Inflation is another factor affecting the currency of the nation, higher inflation rate lead the value of currency go down.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What does it mean to say that, at an exchange rate of 1 USD = 40 INR, the U. S. dollar is undervalued and the Indian rupee is overvalued ? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which Loan type is available to everyone
Answers (1)
Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $180,000 of direct materials costs and $240,000 of manufacturing overhead. The total manufacturing costs for Job No. 501:
Answers (1)
Suppose the company that owns the vending machines on your campus has doubled the price of a can of soda. if they then still sell almost the same number of sodas per day, this suggests: students do not have good nutritional information.
Answers (1)
Vactin Motors, an automobile company, is a well-recognized brand. It does not have the capital and capabilities to set up manufacturing units abroad, although it is keen to have its products made in the foreign market.
Answers (1)
An investment adviser has 1 main office and 3 branch offices, all located in different States. Which statement is TRUE about recordkeeping requirement for the adviser under the Uniform Securities Act?
Answers (1)
New Questions in Business
Acme Foods wants to make its chips saltier, but it doesn't want to spend more than it has to on salt. A sample of consumers are asked to compare its current chip (saltiness = 100) with saltier versions and to say whether the new version is saltier.
Answers (1)
Which of the following comparisons best isolates the impact of a change in activity on performance?
Answers (1)
If an investor anticipates an annual rental income from a leased property to be $400,000 dollars, this expected sum has a direct bearing on what the investor will pay for the property. This is an example of
Answers (1)
In comparison to industry averages, Okra Corp. has a low inventory turnover, a high current ratio, and an average quick ratio. Which of the following would be the most reasonable inference about Okra Corp.? A. Its current liabilities are too low. B.
Answers (2)
The individual with the highest valuation of the good will win in which of the following auctions? A. Sealed Bid Auction B. English Auction C. Dutch Auction D. All of the above.
Answers (1)
Home » Business » What does it mean to say that, at an exchange rate of 1 USD = 40 INR, the U. S. dollar is undervalued and the Indian rupee is overvalued ?
Sign Up Forgot Password?