MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Demand and Supply of Foreign Exchange

What will be ...

Question

What will be the effect of foreign investments in India on exchange rate? Explain.

Open in App

Solution

Foreign investment adds to supply of foreign exchange. Demand remaining unchanged, it brings downward influence on the exchange rate.

Suggest Corrections

thumbs-up

0

Similar questions

Q. (a) In which sub-account and on which side of balance of payments account will foreign investments in India be recorded? Given reasons.
(b) What will be the effect of foreign investments in India on exchange rate? Explain.

Q. Very Short Answer Type Questions:
What will be the effect on imports if foreign exchange rate increases?

Q. Visits to foreign countries for sightseeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?

Q. Foreign exchange rate in India is on the rise recently. What impact is it likely to have on exports and how?

Q. Why are foreign exchange rate and supply of foreign exchange directly related? Explain.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Foreign Exchange

ECONOMICS

Watch in App

explore_more_icon

Explore more

Demand and Supply of Foreign Exchange

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon