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?
Option 1: Demand for foreign currency will fall
Option 2: Demand for foreign currency will rise
Option 3: Supply for foreign currency will fall
Option 4: Supply for foreign currency will rise
Answer (1)
20th Jan, 2024
Correct Answer:
Demand for foreign currency will fall
Solution :
This will reduce the demand of foreign exchange due to decrease in imports.
Hence Option A is correct.
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