Practicing Success
The shape of supply curve of foreign exchange is : |
A horizontal line parallel to x-axis A vertical line parallel to y-axis An upward sloping line A downward sloping line |
An upward sloping line |
The correct answer is option (3) : An upward sloping line This indicates that as the exchange rate (price of foreign currency) increases, the quantity of foreign exchange supplied (amount of foreign currency provided) also increases. |