Open Economy Macroeconomics is a chapter that deals with trading with other countries in the terms of goods and services. This chapter comprises of various topics – open economy, balance of payment, current account, balance of trade, autonomous transaction, accommodating items, foreign exchange market, foreign exchange rate, fixed exchanges rate system, determination of foreign exchange rate, devaluation, depreciation, managed floating.
Frequently asked Questions on CBSE Class 12 Microeconomics Notes Chapter 6: Open Economy Macroeconomics
What is ‘autonomous transaction’?
Autonomous transactions allow a single transaction to be subdivided into multiple commit/rollback transactions, each of which will be tracked for auditing purposes.
What is ‘foreign exchange market’?
Foreign exchange market is an institution for the exchange of one country’s currency with that of another country.
What is ‘devaluation’?
Devaluation is when a country’s government intentionally reduces the value of its currency.