Question : Appreciation and depreciation of a country's currency are primarily influenced by:

Option 1: Supply and demand dynamics in the foreign exchange market.
  

Option 2: Government regulations.
  

Option 3: International trade agreements.

    

Option 4: None of the above.

Question : When domestic currency gains value in relation to a foreign currency in the international market, it is termed as a situation of:

Option 1: Currency Depreciation
 

Option 2: Currency Appreciation
 

Option 3: Currency Devaluation

Option 4: None

Question : In a floating exchange rate system, the value of a currency is primarily determined by:

Option 1: Central bank intervention
   

Option 2: Trade imbalances
 

Option 3: Market forces of supply and demand

Option 4: Government regulations

Question : Selling of securities by foreign institutional investors in Indian capital market with lead to fall in the _______ of foreign currency in the market. The situation might lead to excess _____ of foreign currency at prevailing foreign exchange rate.
 

Option 1: Demand, demand
 

Option 2: Supply, supply 
 

Option 3: Demand, supply 
 

Option 4: Supply, demand
 

Question : Which of the following factors can influence the supply of a country's currency in the foreign exchange market?

Option 1: Interest rates
  

Option 2: Capital flows
 

Option 3: Trade balances

Option 4: All of the above

Question : It is determined by forces of demand and supply.
 

Option 1: Foreign exchange
 

Option 2: Foreign exchange market
 

Option 3: Foreign exchange rate
 

Option 4: None of the above.