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NEER and REER are the terms associated with:
Foreign Exchange Market
Inter-Bank Call Money Market
Treasury Bill Market
None of the above
Nominal Effective Exchange Rate (NEER) is multilateral rate representing the price of representative basket of foreign currencies, each weighted by its importance to the domestic country in international trade (the average of export and import shares is taken as an indicator of this). The Real Effective Exchange Rate (REER) is calculated as the weighted average of the real exchange rates of all its trade partners, the weights being the shares of the respective countries in its foreign trade. It is interpreted as the quantity of domestic goods required to purchase one unit of a given basket of foreign goods
By: Kritika Kaushal ProfileResourcesReport error
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