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.
   

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.

Question : Which of the following statement is correct?

• There is no common denomination under barter exchange to express the exchange ratios.
• Money Supply is a flow concept.
   

Question : Which of the following statement is correct?

• Supply for foreign exchange arise when people wants to make gains from appreciation of currency.
• Loans from foreign country are raised in foreign currency. So foreign currency is needed to repay such