There exists relationship between the demand for foreign exchange and exchange rate.

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

an inverse

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

a direct

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

a one to one

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

Open in App

Solution

The correct option is B an inverse
The demand for foreign exchange varies inversely with the exchange rate. The exchange is effectively the price of foreign exchange.

Suggest Corrections

Similar questions

What is the relationship between the demand for foreign exchange and exchange rate?

What is the relationship between supply of foreign exchange and exchange rate?

The exchange rate at which demand for foreign currency becomes equal to its supply is called:

Join BYJU'S Learning Program