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12th Class Economics Foreign Exchange Rate Question Bank MCQs - Foreign Exchange Rate

  • question_answer
    Indian government initiated many schemes to attract foreign investment, which of the following statement is correct from below

    A) It leads to rightward shift in supply curve of foreign exchange

    B) It leads to leftward shift in supply curve foreign exchange

    C) It leads to rightward shift in demand curve of foreign exchange

    D) It leads to leftward shift in demand curve of foreign exchange

    Correct Answer: A

    Solution :

    Due to increase in investment from foreign country, supply of foreign exchange will increase. So, supply curve will shift to the right.


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