Direct foreign investment is a source of:

none of these

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both (a) and (b)

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supply of foreign exchange

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demand for foreign exchange

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Solution

The correct option is C
supply of foreign exchange

Direct foreign investment is a source of supply of foreign currency.

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Similar questions

(a) Why is demand curve of foreign exchange negatively sloped?

(b) Why is supply curve of foreign exchange positively sloped?

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