Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

What is the reason for gain of foreign exchange?
i. Exports
ii. Influx of investment
iii. Import
iv. Grants from rest of the world

Options:

ii only

ii, iii

i, ii, iv

i only

Correct Answer:

i, ii, iv

Explanation:

Gain of foreign exchange means inflow of foreign exchange. Imports cause outflow of foreign exchange i.e. loss of foreign exchange. Exports, grants from rest of the world and influx of investment means inflow of foreign exchange. Influx means inflow.