More foreign currency will flow into the

CUET Preparation Today

Start Free Mocks

Home Questions 93S56GSGZT

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

More foreign currency will flow into the home country when:

Options:

When people of home country want to send gifts abroad

When people of home country want to purchase financial assets abroad

Imports increase

Exports increase

Correct Answer:

Exports increase

Explanation:

Increase in exports will result in more inflow of foreign exchange in the home country.

In all the other three options there will be an outflow of foreign exchange from the home country.