ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Exports are the source of demand for foreign exchange.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -Two sources of demand for foreign exchange are: (i) Imports from rest of the world. (ii) Foreign investment across the world.
Detailed explanation-2: -Exports, direct purchases, and remittances from abroad are sources of supply of foreign currency.
Detailed explanation-3: -Silver holding of the RBI is not included in the foreign exchange reserves of India.
Detailed explanation-4: -Exports of Goods and Services: Foreign Investment: Remittances (Unilateral transfers) from abroad: Speculation: The supply of foreign currency rises in the following situations:
There is 1 question to complete.