Imports of goods and services raises the _______ of foreign exchange.

supply

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demand

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both (a) and (b)

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neither (a) nor (b)

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Solution

The correct option is B demand
Imports of goods and services raises the demand of foreign exchange. It s a component of the demand of foreign exchange because payments for imports are made in foreign exchange only.

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Which of the following does not characterise a business activity?

(a) Production of goods and services

(b) Presence of risk

(d) Salary or wages

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