Question

The income received by a country through exports, in the form of _____________, can be utilized by the country to import required goods and services.

• A. domestic currency
• B. foreign currency
• C. SDRs
• D. none of the above

Answer 1

Answer: (B)

foreign currency

Import refers to purchasing of goods and services from international market in the country and export refers to selling goods and services in the international market. So when foreign currency is received through exports from a certain country it can be utilized in importing the required goods and services from that country.