Question

State whether the following items constitute demand or supply of foreign exchange:
(i) Indian going to USA for medical treatment.
(ii) Donation of 500 Million $ received from Microsoft.
(iii) Import of goods from China.
(iv) Indian students going to Australia for MBA.
(v) Foreign Tourists to India to visit Taj Mahal.
(vi) Purchase of land in England.
(vii) Bought 500 Pounds to sell for speculation.

Answer 1

Demand for Foreign Exchange: (i); (iii); (iv); (vi); and (vii).
Supply of Foreign Exchange: (ii); (v).