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

  • question_answer
    Due to appreciation of domestic currency, supply curve of foreign exchange will

    A) Rise

    B) Fall

    C) Remain constant

    D) Either [a] or [b]

    Correct Answer: C

    Solution :

    Appreciation of domestic currency will have no impact on the supply curve of foreign exchange. Though it will lead to increase in imports.


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