Which of these creates a demand for foreign exchange in India?

Indians importing goods from abroadCorrect answerYour answerForeign tourists visiting IndiaCorrect answerYour answerForeign firms investing in IndiaCorrect answerYour answerIndians abroad sending money homeCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Importers must pay in foreign currency, so they buy it with rupees.
The other three bring foreign currency in: they add to supply.

Concept: Sources of demand
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsDemand for and supply of foreign exchange

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Which of these creates a demand for foreign exchange in India?

Explanation