Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

"There is no need of demanding foreign exchange for making UNILATERAL transfers abroad."

Which of the following options is true in regards to the above statement?

Options:

The statement is true

The statement is false

There is insufficient information

Can't say anything about the statement

Correct Answer:

The statement is false

Explanation:

The statement stands to be true as any payment which is done in foreign country, be it unilateral or bilateral, has to be done in that country's currency. So, there is a need to demand foreign exchange for making unilateral transfers abroad.