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?

• Increase in demand for foreign goods means increase in demand for foreign currency.
• Under a manage floating exchange rate system, the government directly controls the exchange rate.

Question : Which of the following statement is correct?

• Currency depreciation leads to increase in exports.
• Fixed exchange rate system is also pegged exchange rate system.

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?

• 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.