a ‘ec. School, Jodh St. Paul's Sr. S N - 2020-21 SESSIO LE%4446 a Gbh6 GL4ERG08 SUBMITTED TO — BHAVYA GUPTA Mrs. IRA SHARMA Mam | class-XII Commerce ¥ s a i We aN: i Re Wh ‘ AN bi \ ‘ VADER . NSNFs PDD OOOO 00.0.6 006 e| PLODO 0 0 NO OD ANA EOIN UA GAD) ee) d 64 66 Ob 6 6G é eos ACKNOWLEDGEMENT most, praises and thanks to the God, the sh for successful Almighty, First and fore for his showers of blessings throughout my researc completion of the project jowledge 1 am overwhelmed in all humbleness and gratefulness to ackni 1c ideas, well my depth to all those who have helped me to put thes 19 concrete: | would Ira above the level of simplicity and into somethin; itude to my teacher Mrs: Ir like to express my special thanks of grati Sharma mam as well as our Principalfr- Cantius Ligoury who gave me the golden opportunity to do this wonderful project on the topic “Foreign Exchange Rate”, which also helped me in doing a lob of really research and | came to know about so many new things: | am thankful to them: Any attempt at any level can't be satisfactorily completed without the support and guidance of my Parents and Friends: | would like to thank my parents who helped me a lot in gathering different information, collecting data and guiding me from time to time in making this project within time limits: Despite their busy schedules, they gave me different ideas in making this project unique | Thanking You Bhavya Gupta Xi Commercey rn) PPh 00 0.0.0 .0.6.6 PAD P89 00 AAA AAS AS aa, ORCTOTC TONG ROME CERTIFICATE Gupta, a student of class XII This is to certify that Bhavya Commerce of 5t+ Paul's Sr- Sec: School, Jodhpur (Raj) has successfully completed the project file of Economics under the guidance of Mrs: Ira Sharma Mam (Subject Teacher) during the year 2020-21 It is certify that this project is up to my expectation and as per guidelines issued by CBSE Signature of Subject Teacher Signature of ExaminerSD © a8 al OOO 0 oe Aah 6 s © 6 Cbbddd & Pop 7) oe ON ATATATAT ATA O66 Seeds ©4babd INDEX Introduction (Foreign Exchange Rate) = Currency Depreciation + Currency Appreciation Currency Devaluation and Currency Revaluation Types of Foreign Exchange Rates > Fixed Exchange Rate > Flexible Exchange Rate > Managed Floating Rate Demand for Foreign Exchange + Supply of Foreign Exchange Determination of Exchange Rate © Changes in Exchange Rate > Change in Demand > Change in Supply © Foreign Exchange Market > Introduction > Functions > Kinds of Forex Markets Depreciation of Indian Rupee > Introduction > Couses > Effects > Measures * Why Dollar © Conclusion © BibliographyPB Lf L000 a6 SO6bCLL ® FOREIGN EXCHANGE RATE a SS1 Cun. Curitienct within Be bund in. counby couuibey. In. payment us Ante the curdancy eusthy County want, us Lei cAy Fe eign. Exchange Feepio than the derntatic Cubiiency Of a. Fox examp i dembotic Luss clin, Rupee ond abl thes. Curouncies Dalla, Bsiitiok Punch, Hussai ase. feeagne 2 change Dinar fe taarp pan Arnerican San. it would Dike te bia At_a_suaubt. Indian importer. crest. Snalian kuppeso ine as te_make the, Posrnerit geede fe _ ff, payrant dn Dell will howe Arresican.currency inte anstheh and. thick 2 tu Cubeneica do the change oy “i tan Le txchan Feseign tachangt fale measures the fet pbundo—and_ that tire a cat Had. ae many Puign exchange states a0 _fheire ake. Festa uscrtrcies Like many Othe picts, crchange male tswnined feria of —olernand. Ny ONE es SyGusecency L dochbase Lh. value by domestic. numa op feruign. St mahes y -_cuoneniy less and. mee. te fry. Cubtiancy jo Wee gibel Fit exarnple + CD) Rupee sa_taid te he diprectaling if pick bf 274. $4 mises prem. 4 GDA change pur . 15 = £1 eprusnte that UK pound io_deppeciating Effects ames Deficiation iy diredlic. cudduncy yntana i taps a4 —demtilic curbency C day rupee Jin ya fuign Uunreniy (tay, $). St _| f2 hare armbunk of dellesa roe fem India, ie, USA will incense ar Hoag ill _| astly cheaper. -e. Eli ai foi; i Ba Hh) i i ei aa ‘ : Gy Wa ih ; Wis NT Csvancy Suh value 64 cadber demadlic._turduncy Land cweancy Cb say, $) 6} mabey on USA. dt fon Prnduican. ged Wi ae sia eR Nar AON 1 i ath OY Oi ) j ee q Ra a VRS ea fi NAAN:IMEPPETE ETE C CC COREE OCC e OTK e . {A: “The upp ie Be feign ae _ [eign Be ae fe ppc of ne as ee: ee Sara ts | fle op UK A ae 6 Sncorne — in _ pees est of, the hich sfc eHyeeeny ly! of Foseign o in. Supp! dornestic cubdeniy rata pupply of fe taart te yanks. glen por ela cdvuanty grisea aa__pepl of Foreign Exchange Supply Curve ign. exthangt. a dak Supply cour va fe ze alee Letweonbupfly — se ie es Aitinre— ual change and. feeigh a a fequce,—bupply a feuige Cus i and. qale._bf foreign. eachange—b atin —and,_Y- 0240 [eon dhburn — 0h tha. X= ely The positively. alefed dupiply Curve piespects hb that supply of foreige— exchange. mloea_ ppb. 01 +e 06. when the exe et ready nite purer OR. +e OR. .—» $9 COP COCO CO’ S N OF EXCHANGE RATE! DETERMINATIO 29ND OL PH Oe CCE ee eee eZ DPP PLP PO DO OO A.) |uf phy and coho V AY aN ae Wi ‘ Ne ain clemand. sase. id lemand.” a Increase in Demand. — “An inctuase. in, _dornand.— fe fe will shife the demand Curse 10 DiD. . Sn the _fegure, BGs t of OR. faa gosult atthe oPcigina! the | exchax Asian fe OR,» St phbata that _for_unit_pruce_ef US polls. Cin. Houno_ ofp Mupaa> “han _inchtabod. ies, dlermeaic tubsarnty hae deprecioted - ° Decrease a A ducitease— Mh shift tho demand casive _teszaicda Left os —can. Le pobr. in the equa pom DD te ‘Dada St feado je : cit dornand bf Gbu_at fe _e%iginal. eatebarge —ral_of OR Ao a suaubt, etchange scale Lidl fall tell ct swoachos OAr. Nbr, per _unct priceito ange 4m Sy aly sy « Increase in — Supply - dup ply Ce i eign to: sly rade, fot per es seduced, A ducsaase in. oupply till hfe sa. St Leada to defect phy opt 8 a leer: nal 08. Th wereeaak the acharge. og He sk ches OR» pe _teuma Bf Suspetodh and_, thus re domestic. cudrtrcy — han aleppuccalec PN& 4, and, 5 Foner eran lease OeFOREIGN EXCHANGE MARKET eeebuh. o_bnby Henewet cased eae nN De NT NO, VA Ne arfa Lurtensse the thir | One unique ect of 1 bn mee hore is nb tenitcal _nasckotplace — j = NNS awwerEemes SVEN Selunctiona of actually atte ; Je hedging ankicifacted 2r | | [szex | Transfer oO \| Function eC oe > 4G wee Functions of vag ) A Foreign Exchange \.? / Market ————l Ny ee eevee ets rf 8S,° Spot Markets -— in_which 1 Forward Market the market which. jo_actlled.— od__upen. t | contract io rnd te — pdatiae changes jin corchange. Suita.Payment Types ) 2 oO Spot . Market ( Forward \ Market —— Immediate Delivery +w wi a 2 x Z < a Zz ze he ° z 6 E < UU wu 4 a Ww eyand_pupply_fee p pruce the me Miniate ene sb i value, $n |9 40 + ‘val at you. lriiakd. g, Hairking lh 2.020, has. 2 Lyk in value of Sandia Rupee againel, it should net_Le._fe'igetlen. that 4 i bf, lubireney 121 an indicale bf. the canbrnic Ltungth Of 4 low enthion. ad of 10s Letters than thal tf [141 thangh. the in flacleatibe. sd Cubinnty, rmaihet foo fall tmWong bum Lap | Aaa alse put dewredoaid hr India hao fern Diougghing te insoeatorend dousnisacd srtodure on the Ru, default by natians ouch ao Ysurce , tho LER Crinte , undbporgetuming dottrnctierral market [ntrensed —bpeculalion, ix. He manket_, tcensrale ape : ricaausica Ly US. Fed. have further pu. Prowure en TNR@ ts danpact_oy Hat enchorge | The déscect and. smuntdale gate ia onthe eaiperrle and. Linfpeia.Oy —& rib. Whan._ulifee_dofonciates Leste YAW H. Suespect 10 the collate Bauysng. Anported lif I Lecomco Wry tastly a ait = Sfudinb whe as. P aludying alnbad will bene the bunt rest | Stating he cofPrectalieng spl The doprecialing Hupee fail alse Le _a_dampenc”. fe plan fo 4 holiday. | lead. Arta super will incdeaae the —fnstiden | oy oil _naxpeting companies and. fia trill be | awiel, passed en He lensurntro 4 dappecialien so} ‘vortinues, RBI will fame very fess seem. Er } Supe H cut policy sata tvhich in tubun dill_add te will Wiing delight te te _experdora | 22 gteda_gsedo_eapoiled altted will teh dollars A peck super till make India. apse _Lenpolitase Ln. platal smabhol — pepoectation. Hf Mupth— iat goed. nis for_evenstas Indiana Those tt*king abrbad. lan. gain. —} | ntsce on seristhing rreny 10 thoid, hbrmsland.- Travel_and fousiom. twill be Lencfilled por depeecation. ef Msple- 4 | Yeusust corns te Sadia then ie wpuld Lecome cheapsr fo% him-|Rupee dola re_ Indiara— inbred eR _ Hrading. depp dati. 4% faa a ipernity Pa we Lan z ug Bids © pipendiladst tr foun 4 dee Re Rights jstslotits ewnment Dende Peaaury nelho, than ge! “ehharcement of nemittancea prert abitad.| ped turrtalroot of, Nermrilanccea te alitad1944. tek) Courtbie ogruod 0- vet _e feuna of dolled: Bul im | é td. 470s,,-raeat_Counl G. exchange of tebe stich. deflated US ld? Hh 2 bin practice tovinats Z The lative Abrengts. af Hoe US_ecensrny. puppordo value of 4 Masi: $ts the seeantn. ai. is tha seiful_turvency. Teclay rw? Han bl of a A est. ase donerinated une_dollor.. ta he appececionalel deblata _ Nearly 8 dallas Af te nin- brnthican, céuileits alse Pade with each other, they propr te tahs VS della%e in, payment Prieur. they habe Hat ey lad imped geteds pubm. ony PEt. — tine Hsy have dallohe in a (es.t s Hes Why is US Dollar a Global Curren:be Lenfusing, Custer cseo. weld nacuenf lib jossestnent pe t i tad pthe ret “Hose via pee foro fpraige exchange safes feral i AN NiA a A vA FRG ri