Get premium membership and access questions with answers, video lessons as well as revision papers.
• Devaluation. Some countries devalue their currencies to increase the quantum of their exports. Value of the domestic currency decreases as a result of it.
• Mobility of capital. When a country gets loan from another country, the creditor country will need currency of the debtor country. Due to increase in the demand for the debtor country currency, its value will increase and vice versa.
• Political situations. When political affairs of a country are not stable and occurrence of revolutions are common feature, the people of that country will sell the currency instead of keeping it with them. It will cause a decrease in the value of the currency of that country.
• Effects of stock exchange. If any country begins to purchase shares and securities of a country, the value of that country’s currency will increase and it will result in value of that country’s currency.
• Speculative effects. When there is a speculation of an increase in the value of any currency, the people start will start to purchase greater amount of that currency.
skilled writter answered the question on May 1, 2018 at 16:24
- Distinguish between nominal interest rate and real interest rate.(Solved)
Distinguish between nominal interest rate and real interest rate.
Date posted: May 1, 2018. Answers (1)
- Explain the various measures to control inflation.(Solved)
Explain the various measures to control inflation.
Date posted: May 1, 2018. Answers (1)
- Explain 7 effects of inflation.(Solved)
Explain 7 effects of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the various causes of inflation.(Solved)
Describe the various causes of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the classifications of inflation(Solved)
Describe the classifications of inflation
Date posted: May 1, 2018. Answers (1)
- State six feature of inflation(Solved)
State six feature of inflation
Date posted: May 1, 2018. Answers (1)
- Distinguish between risk control and risk financing(Solved)
Distinguish between risk control and risk financing
Date posted: May 1, 2018. Answers (1)
- Discuss four methods of handling risks(Solved)
Discuss four methods of handling risks
Date posted: May 1, 2018. Answers (1)
- Outline the steps involved in the risk management process.(Solved)
Outline the steps involved in the risk management process.
Date posted: May 1, 2018. Answers (1)
- State the meaning and explain objectives of risk management(Solved)
State the meaning and explain objectives of risk management.
Date posted: May 1, 2018. Answers (1)
- Explain the six parts of an insurance contract(Solved)
Explain the six parts of an insurance contract
Date posted: May 1, 2018. Answers (1)
-
State the exceptions to the principle of indemnity in insurance(Solved)
State the exceptions to the principle of indemnity in insurance
Date posted: May 1, 2018. Answers (1)
- Explain four requirements of a valid insurance contract.(Solved)
Explain four requirements of a valid insurance contract.
Date posted: May 1, 2018. Answers (1)
- Explain five requirements of an insurable risk.(Solved)
Explain five requirements of an insurable risk.
Date posted: May 1, 2018. Answers (1)
- Explain four characteristics of insurance(Solved)
Explain four characteristics of insurance
Date posted: May 1, 2018. Answers (1)
- State four elements that are required for an insurance transaction.(Solved)
State four elements that are required for an insurance transaction.
Date posted: May 1, 2018. Answers (1)
- Define the term insurance according to commission on insurance terminology of the American Risk.(Solved)
Define the term insurance according to commission on insurance terminology of the American Risk.
Date posted: May 1, 2018. Answers (1)
- State six functions of money(Solved)
State six functions of money
Date posted: May 1, 2018. Answers (1)
- Differentiate between money and wealth.(Solved)
Differentiate between money and wealth.
Date posted: May 1, 2018. Answers (1)
- Explain five ways in which privatization would be beneficial to country(Solved)
Explain five ways in which privatization would be beneficial to country
Date posted: May 1, 2018. Answers (1)