Ppp
This query is : Resolved
07 January 2014
The exchange rate of two currencies of two countries represents the relative purchasing power of those countries.
For example, if a basket of goods costs GBP 1 in U K and the same basket of goods costs INR 90 in India, then the exchange rate of the two currencies is shown as GBP 1 = INR 90. This theory suggests that the changes in the rates of inflation of respective countries is the reason for changes in exchange rates implying if inflation rates of two countries continues to be same, then the exchange rate between the currencies of those countries will also remain same.
Thanks!
For example, if a basket of goods costs GBP 1 in U K and the same basket of goods costs INR 90 in India, then the exchange rate of the two currencies is shown as GBP 1 = INR 90. This theory suggests that the changes in the rates of inflation of respective countries is the reason for changes in exchange rates implying if inflation rates of two countries continues to be same, then the exchange rate between the currencies of those countries will also remain same.
Thanks!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- LIABILITY ADJUSTMENT
- Average Cost Of High Quality Diamonds
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
