Capital is term which measures the stream of money
Capital and trade flow fundamentally drive currency values as these two are the elements which helps determine price fluctuations by predicting their supply and demand for currency values. Capital is term which measures the stream of money in and out of economy. It can include purchasing of substantial goods, services, stocks and bonds. Purchasing and selling of all these factors determine supply and demand which then drives currency values whether to rise or fall. Flow of money is beyond borders of every country. It does not have al limit to invest in a particular country or organization. Because of globalization it has made it is easy for investor to invest where they have more chances of profits and where the currency values are higher or can be higher in future. More…….
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