The demand curve for dollars in India slopes downward because, as the rupee price of a dollar falls,

Indian goods become cheaper for foreignersCorrect answerYour answerforeign goods become cheaper in rupees, so imports riseCorrect answerYour answerthe RBI sells more dollarsCorrect answerYour answerexports riseCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

A cheaper dollar makes imports, foreign travel and study abroad cheaper, so more dollars are demanded.

Concept: Downward-sloping demand for forex
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDemand for and supply of foreign exchange

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The demand curve for dollars in India slopes downward because, as the rupee price of a dollar falls,

Explanation