Read the two statements and choose the correct option.
I. Foreign tourists spending in India add to the supply of foreign exchange.
II. Indians buying shares of foreign companies add to the supply of foreign exchange.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Tourists exchange their currency for rupees. I is true.
Buying foreign shares needs foreign currency: that is demand, not supply. II is false.

Ten questions from Foreign Exchange Rate, at your own pace.

Ten questions from Foreign Exchange Rate, at your own pace.

Read the two statements and choose the correct option.I. Foreign tourists spending in India add to the supply of foreign exchange.II. Indians buying shares of foreign companies add to the supply of foreign exchange.