Class 12 Economics: Macroeconomics – Open Economy Macroeconomics – Get here the Notes for Class 12 Economics : Macroeconomics – Open Economy Macroeconomics. Candidates who are ambitious to qualify the Class 12 with good score can check this article for Notes. This is possible only when you have the best CBSE Class 12 Economics Notes,study material, and a smart preparation plan. CBSE 2019 Class 12th Exam is approaching and candidates will have to make the best use of the time available towards the last stage of your CBSE Class 12th Economics Preparation. To help you with that, below we have provided the Notes of 12 Economics for topic Macroeconomics – Open Economy Macroeconomics.
- Class: 12th
- Subject: Economics
- Topic: Macroeconomics – Open Economy Macroeconomics
- Resource: Notes
CBSE Notes Class 12 Economics Open Economy Macroeconomics
Candidates who are pursuing in Class 12 are advised to revise the notes from this post. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. So, go ahead and check the Important Notes for Class 12 Economics : Macroeconomics – Open Economy Macroeconomics.
Points to Remember
1. Open Economy It is one in which trading is done with other nations in goods and service and most often in financial assets.
2. Balance of Payment It is a systematic record of all economic transaction between the residents of a country, and the rest of the world during a year.
3. Current Account Transactions relating to trade in goods and services and transfer payment constitute the current account. Components of Current Account
(i) Visible Trade
(ii) Invisible Trade
(iii) Transfer Payment
4. Capital Account It represents international capital transactions which include sale and purchase of assets such as bonds equities, lands, loans, bank account etc. Components of capital account
(i) Foreign Investment
(iii) Banking Capital Transaction.
5. Balance of trade It means the systematic records of visible imports and exports in a given year. BOP = Visible Exports – Visible Imports
6. Autonomous Transaction It refers to those international economic transaction which are taken with the motive of profit.
7. Accommodating Items All the items related to the monetary transfers correcting balance of payments dis equilibrium are accommodating items.
8. Foreign Exchange Market The market in which foreign currencies are bought and sold is called the foreign exchange market,
9. Foreign Exchange Rate The rate at which one currency is exchanged for other is known as the rate of exchanges or foreign exchange rate.
10. Fixed Exchanges Rate System It refers to the rate of exchange fixed by the government . It has two important variants
(i) Gold standard system of exchanges rate.
(ii) Bretton woods system of exchanges rate.
11. Determination of Foreign Exchange Rate It is determined by the forces of supply and demand in the foreign exchanges market.
12. Devaluation It is the fall in the value of domestic currency in relation to foreign currency as planned by the government. In a situation exchanges rate is fixed by government,
13. Depreciation It is the fall in the value of domestic currency in relation to foreign currency in a situation when exchange rate is determined by the forces of demand and supply in the international money market.
14. Managed Floating It is a system that allows adjustments in exchanges rate according to set of rules and regulation which are officially declared in the foreign exchanges market
Class 12 Key Points, Important Questions & Practice Papers
Hope these notes helped you in your schools exam preparation. Candidates can also check out the Key Points, Important Questions & Practice Papers for various Subjects for Class 12 in both Hindi and English language form the link below.
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Class 12 NCERT Solutions
Candidates who are studying in Class 12 can also check Class 12 NCERT Solutions from here. This will help the candidates to know the solutions for all subjects covered in Class 12th. Candidates can click on the subject wise link to get the same. Class 12 Chapter-wise, detailed solutions to the questions of the NCERT textbooks are provided with the objective of helping students compare their answers with the sample answers.
Class 12 Mock Test / Practice
Mock test are the practice test or you can say the blue print of the main exam. Before appearing in the main examination, candidates must try mock test as it helps the students learn from their mistakes. With the help of Class 12 Mock Test / Practice, candidates can also get an idea about the pattern and marking scheme of that examination. For the sake of the candidates we are providing Class 12 Mock Test / Practice links below.
Class 12 Exemplar Questions
Exemplar Questions Class 12 is a very important resource for students preparing for the Examination. Here we have provided Exemplar Problems Solutions along with NCERT Exemplar Problems Class 12. Question from very important topics is covered by Exemplar Questions for Class 12.Class 12 Economics Notes Maths Notes Economics Notes Sociology Notes