Demand for foreign currency depends upon:

both (a) and (b)

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

direct foreign investment in the domestic economy

No worries! We‘ve got your back. Try BYJU‘S free classes today!

investment in rest of the world

No worries! We‘ve got your back. Try BYJU‘S free classes today!

repayment of international loans

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
both (a) and (b)

Investment outflows and repayment of international loans are sources of demand for foreign currency.

Suggest Corrections

Similar questions

State any two factors that explain expansion of demand for a foreign currency in response to a fall in its price (in terms of the domestic currency).

Supply of foreign currency depends upon:

Join BYJU'S Learning Program