What are the system of exchange found in modern societies? In the modern economy there has been a considerable change in the system of exchange. In the field of production, the system of exchange is also connected with efficiency and skill.
Foreign Exchange markets can be studied keeping into view the period for which transactions are carried out. If the transaction or operation is of daily nature, it is called current market or spot market.
Section 5 defines a bill of exchange as “an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to or to order of, a certain person…
A cheque differs from a bill of exchange in the following respects like drawee, acceptance, payment, crossing, notice of dishonor, stamp etc…
In the modern economy there has been a considerable change in the system of exchange. In the field of production, the system of exchange is also connected with efficiency and skill.
Oxygen is one of the inputs and carbon dioxide is one of the outputs of respiration. Therefore, oxygen has to be supplied to all cells of the body and carbon dioxide produced in cells has to be taken away
Flexible exchange rate system is claimed to have the following advantages: Under flexible exchange rate system, a country is free to adopt an independent policy to conduct properly the domestic economic affairs. The monetary policy of a country is not limited or affected by the economic conditions of other countries.
Fixed or stable exchange rates ensure certainty about the foreign payments and inspire confidence among the importers and exporters. This helps to promote international trade whereas one of the main disadvantage is that the prices were more flexible. Since all these conditions are absent today, the smooth functioning of the fixed exchange rate system is not possible.
In the broader sense, the foreign exchange is related to the mechanism of foreign payments. It refers to the system whereby one currency is exchanged for or converted into another. Foreign exchange market is a market where foreign currencies are bought and sold by the traders' to meet their obligations abroad.
The Reserve Bank of India performs various traditional central banking functions as well as undertakes different promotional and developmental measures to meet the dynamic requirements of the country.