Question : Which of the following statement is correct?

• Unilateral transfers are also known as required transfers.
• In current account, when value of credit items are more than debit items, it indicates net inflow of foreign exchange.
   

Question : Which of the following statement is correct?

• Foreign exchange is demanded to make the payment for imports of goods and services.
• Foreign exchange is needed to meet expenditure incurred in foreign tours.

Question : Which of the following statement is correct?

• Supply of foreign exchange increases in the form of gifts and other remittance from abroad.
• Supply of foreign exchange comes from those who wants to speculate on the value of foreign

Question : Which of the following statement is correct?

• Borrowings from rest of the world contribute to supply of foreign exchange to India.
• Grants and donations from rest of the world only result in demand of foreign exchange.
   

Question : Which of the following statement is correct?

• Supply of foreign exchange come through imports of goods and services.
• The amount which foreigners invest in the home country, increases the supply of foreign exchange.