Question : ________, shows that unit price of foreign currency has increase i.e., domestic currency has depreciated. 
 

Option 1: Increase in demand
 

Option 2: Decrease in demand
 

Option 3: Increase in supply
 

Option 4: Decrease in supply
 

Question : The Indian government banned import of fans with a view to promote domestic manufacturing and cut imports of spices.
How this will impact demand of foreign currency?
 

Option 1: Demand for foreign currency will fall
 

Option 2: Demand for foreign currency will rise
 

Option 3: Supply for foreign currency will fall
 

Option 4: Supply for foreign currency will rise
 

Question : The Indian government banned import of cars with a view to promote domestic manufacturing and cut imports of batteries.
How this will impact demand of foreign currency?
 

Option 1: Demand for foreign currency will fall
 

Option 2: Demand for foreign currency will rise
 

Option 3: Supply for foreign currency will fall
 

Option 4: Supply for foreign currency will rise
 

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 : It refers to decrease in the value of domestic currency in terms of foreign currency.
 

Option 1: Depreciation
 

Option 2: Appreciation
 

Option 3: Revaluation
 

Option 4: Devaluation