ECONOMICS
BALANCE OF TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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international demand for a nation’s currency
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international supply of a nation’s currency
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the total supply of a nation’s currency
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the value of one currency compared to another
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Detailed explanation-1: -Silver holding of the RBI is not included in the foreign exchange reserves of India. India is amongst the top ten reserve holding emerging market nations.
Detailed explanation-2: -The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspects of buying, selling and exchanging currencies at current or determined prices.
Detailed explanation-3: -Notes of denomination ₹200, ₹500 and ₹100 are all valid currency notes used in India. However, monopoly currency isn’t useful and doesn’t have any value outside the boardgame. Therefore, it is not a valid currency note.
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: