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Question : Which of the following statement is correct?

  • Borrowings from rest of the world contribute to supply of foreign exchange to India.
  • Grants and donations from rest of the world only result in demand of foreign exchange.
     

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.
 


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Answer (1)
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Correct Answer: Statement 1 is true and statement 2 is false.
 


Solution : Borrowings from rest of the world contribute to supply of foreign exchange to India.
Grants and donations from rest of the world only result in supply of foreign exchange.
Hence option C is correct .

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