What is the difference between black and parallel markets for foreign exchange? How are these created?
What will be an ideal response?
As a result of government restrictions or legal prohibitions on foreign-exchange transactions, markets in foreign exchange develop to satisfy trader demand. When these markets are deemed illegal, then the alternative market is known as a black market. On the other hand, when the alternative market is allowed to flourish, then it is known as a parallel market.
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The principal difference between conventional accounting and economic analysis of inflation is that
a. accountants adjust nominal values for inflation. b. accountants adjust real values for inflation. c. economists adjust nominal values for inflation. d. economists adjust real values for inflation.
How can autonomous consumption be greater than zero when income is zero?
What will be an ideal response?