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Question : What is the shape of Supply curve of foreign exchange:

Option 1: parallel to y-axis
 

Option 2: parallel to x-axis
 

Option 3: slope downwards

 

Option 4: slope upwards


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: slope upwards


Solution : The correct answer is (d) slope upwards. 

The supply curve of foreign exchange has an upward slope, indicating that as the exchange rate increases, the quantity of foreign exchange supplied also increases. This reflects the positive relationship between the exchange rate and the quantity of foreign exchange supplied by individuals, businesses, and institutions in the foreign exchange market.

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