Question : Selling of securities by foreign institutional investors in Indian capital market with lead to fall in the _______ of foreign currency in the market. The situation might lead to excess _____ of foreign currency at prevailing foreign exchange rate.
Option 1: Demand, demand
Option 2: Supply, supply
Option 3: Demand, supply
Option 4: Supply, demand
Answer (1)
22nd Jan, 2024
Correct Answer:
Demand, demand
Solution :
Selling of securities by foreign institutional investors in Indian capital market with lead to fall in the supply of foreign currency in the market. The situation might lead to excess demand of foreign currency at prevailing foreign exchange rate.
Hence Option A is correct.
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