Question : ________, shows that unit price of foreign currency has decrease i.e., domestic currency has appreciated .
Option 1: Increase in demand
Option 2: Decrease in demand
Option 3: Increase in supply
Option 4: Decrease in supply
Correct Answer: Decrease in demand
Solution : Decrease in demand shows that unit price of foreign currency has decrease i.e., domestic currency has appreciated. Hence Option B is correct.
Question : ________, shows that unit price of foreign currency has increase i.e., domestic currency has depreciated.
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?
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 : What does the term "currency appreciation" refer to?
Option 1: Increase in the value of domestic currency
Option 2: Increase in the value of foreign currency
Option 3: Decrease in the value of domestic currency
Option 4: Decrease in the value of foreign currency
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