Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Which of the following results in imports of goods and services of foreign exchange?

Options:

supply of foreign currency

demand of foreign currency

Both 1 and 2

Neither 1 nor 2

Correct Answer:

demand of foreign currency

Explanation:

The following cause demand of foreign exchange:

  • Import of goods and services
  • Tourism to foreign country
  • Repayment of interest and loans
  • Extension of loans to foreigners
  • Investments made by India