Assertion (A): Speculators who expect the dollar to rise buy dollars now.
Reason (R): They hope to sell the dollars later for more rupees.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Speculative demand rises when a currency is expected to gain. R explains A.

Concept: Speculative demand
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsDemand for and supply of foreign exchange

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

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

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Assertion (A): Speculators who expect the dollar to rise buy dollars now.Reason (R): They hope to sell the dollars later for more rupees.

Explanation

Assertion (A): Speculators who expect the dollar to rise buy dollars now.
Reason (R): They hope to sell the dollars later for more rupees.