Question 12
MediumOriginal questionMatch each transaction with its effect in India's forex market.
| List I | List II |
|---|---|
| A. An Indian student pays fees to a university in Canada | I. Supply of foreign exchange (investment inflow) |
| B. An Indian IT firm is paid by a US client | II. Demand for foreign exchange (services import) |
| C. A Japanese company builds a factory in Gujarat | III. Demand for foreign exchange (loan repayment) |
| D. An Indian firm repays a loan taken from a German bank | IV. Supply of foreign exchange (services export) |
Show the answer and explanation
CorrectNot quiteAnswer C
Correct answer: C
Explanation
Payments abroad create demand for foreign currency; receipts from abroad create supply.
- Concept
- Demand and supply of forex
- Typical timeTypical
- 90 s
- Your timeYours
- —
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