(a) Mr. A is planning to buy a bond which is priced at Rs 2000. He...
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(a) Mr. A is planning to buy a bond which is priced at Rs 2000. He would receive Rs 220 at the end of one year as principle plus interest. Mr. A to buy this bond? Explain your answer. b)What constitutes the current account of the balance of paymentaccount of a country? c) Explain the "Fundamental Balance of Payment Identity"? How does the official settlement balance ensure this identity? (a) Mr. A is planning to buy a bond which is priced at Rs 2000. He would receive Rs 220 at the end of one year as principle plus interest. Mr. A to buy this bond? Explain your answer. b)What constitutes the current account of the balance of paymentaccount of a country? c) Explain the "Fundamental Balance of Payment Identity"? How does the official settlement balance ensure this identity?
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a After a year the actual value of Rs 220 is 220112 220 rupe... View the full answer
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