How is it related to stock market and how highs and lows in stock market are related gold value?
2007-11-11 16:55:29 · 5 answers · asked by Anonymous in Social Science ➔ Economics
Exchange rates are very much related to stock market. if we print more Rupee, then we float it into the market. the supply of rupee will be high and the people will buy the goods & products easily with that rupee. then the value of the rupee decreases because it can get easily in the market. so to compensate the value of the product with the value of money, automatically the value of products & goods will also increases. so we have to pay more for the goods with comparing to real rate. so this makes difficult to measure the value of goods.
exchange rates are the rates that two currencies specifies how much one currency is worth in terms of the other.. each country will have their own currency & exchange rate. So this helps to find the real value ofthe goods. according to the growth of the country, the exchange rates will also differs. The exports and imports plays an important role here. if value of a currency will be appreciated only if the demand for the currency of that particular country increases.
2007-11-11 20:43:57 · answer #1 · answered by ranjith 3 · 0⤊ 0⤋
You ask a lot of questions. To answer the first, exchange rates exist simply because different countries have different currencies. They are, in themselves, object of trade, and the exchange rate is what the market is willing to establish as a selling price. If more rupees were printed without a corresponding increase in what they represent, you will have inflated the rupee and wound up decreasing the exchange rate.
2007-11-11 17:05:35 · answer #2 · answered by cattbarf 7 · 0⤊ 0⤋
See..!!
if we will print the currency to co-ordinate with dollar, perhaps it will serve this purpose up to some extant; but the biggest risk for this is that- our economy will be in trouble! the prices will be suddenly increase & all indians will suffer!
secondly- even if we print the money, the biggest challenge is to equally distribute it among all indians(more than 1,000,000,000). in this people, even those are included who dont have any bank account! some of them even dont have any birth certificate- so there is not any "on paper" registration of them! many of people have unregistered property. if u want to distribute new money among indians, u will have to distribute it proportionately to the present property of them...& in this condition u cant do this thing!!
& thirdly, the most important thing is- WHY DO U WANT 2 MAKE RUPEE WEAKER?? its good that rupee is being stronger & stronger!! the thing that creates problem is its speed. we just need to slow its rate of strengthening!!..not making it weak. government is slowing this process by investing the money..& that is the simplest way 2 do this..!!
..MY FRIEND!!..I THINK U HAVE GOT THE ANSWER!!
..CU..
2007-11-11 17:22:28 · answer #3 · answered by "Q..?"uestion 1 · 1⤊ 0⤋
Know what will happen when your country is printing a lot of money, then more money will be distributed and then more people have a lot of money, which will lead to unnecessary rise in the demand as people have money. But when the supply will decrease, then the costs of the commodities will increase drastically. Then u will find out that the Chocolate worth few bugs will cost few 100 bugs.Got it.
2007-11-11 17:23:38 · answer #4 · answered by pps_pranav 1 · 0⤊ 1⤋
Then they will also print. Can't they do that???
2007-11-11 17:06:57 · answer #5 · answered by sssshhhhhhhhh.................. 2 · 0⤊ 0⤋