Practicing Success
Which of the following is source of supply for foreign exchange?
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Girdhiraj from Maharashtra importing sandals for his footwear business Repayment of loan of World Bank Britenny from Brussels visiting India for an office tour Investment by Punjab government in South Korea |
Britenny from Brussels visiting India for an office tour |
Any transaction that involves receipt of foreign exchange leads to an increase in supply of foreign exchange. When, Britenny from Brussels visits India for an office tour she exchanges euro for rupees leading to receipt of foreign currency. Whereas, all the other options increase the demand of foreign currency. Import of goods, investments made by India, repayment of interest and loans etc. are the sources of demand of foreign currency. |