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.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 2 is true and statement 1 is false.
Correct Answer:
Statement 2 is true and statement 1 is false.
Solution :
Supply of foreign exchange come through exports of goods and services.
The amount which foreigners invest in the home country, increases the supply of foreign exchange.
Hence option D is correct .