The supply curve of dollars in India slopes upward because, as the rupee price of a dollar rises,

imports become cheaperCorrect answerYour answerIndians travel abroad moreCorrect answerYour answerexports become cheaper for foreigners and riseCorrect answerYour answerforeign investors leave IndiaCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

Each dollar now buys more Indian goods, so foreigners buy more from India and bring in more dollars.

Concept: Upward-sloping supply of forex
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDemand for and supply of foreign exchange

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The supply curve of dollars in India slopes upward because, as the rupee price of a dollar rises,

Explanation