BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -You can indefinitely retain foreign exchange upto US$ 2, 000, in the form of foreign currency notes or travellers’ cheques (TCs) for future use. Any foreign exchange in cash in excess of this sum, is required to be surrendered to a bank within 90 days and TCs within 180 days of return.

Detailed explanation-2: -Foreign exchange is also important when a country is investing in another. If the US is investing in India, it has to invest in rupees. Such transactions create a demand for foreign exchange. This is why the foreign exchange market is important.

Detailed explanation-3: -The purchase and sale of international currencies takes place in a foreign exchange (FX) market.

Detailed explanation-4: -Foreign Exchange Transaction means any transaction by which a currency is exchanged, converted or traded for another or in which negotiable bills are drawn in one country to be paid in another country.