Question : ________, shows that unit price of foreign currency has increase i.e., domestic currency has depreciated.
Option 1: Increase in demand
Option 2: Decrease in demand
Option 3: Increase in supply
Option 4: Decrease in supply
Correct Answer: Increase in demand
Solution : Increase in demand shows that unit price of foreign currency has increase i.e., domestic currency has depreciated.
Hence option A is correct.
Question : ________, shows that unit price of foreign currency has decrease i.e., domestic currency has appreciated .
Question : The Indian government banned import of cars with a view to promote domestic manufacturing and cut imports of batteries. How this will impact demand of foreign currency?
Question : The Indian government banned import of fans with a view to promote domestic manufacturing and cut imports of spices. How this will impact demand of foreign currency?
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.
Question : What does the term "currency appreciation" refer to?
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