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प्रश्न
Answer the following question.
State any two factors responsible for the inflow of foreign currency.
उत्तर
Factors which are responsible for inflow of foreign currency are:
- A country receives foreign exchange from various receipts in economic transactions such as a receipt from exports of the domestic country to rest of the world, receipt of remittances from abroad, FDI, and purchase of financial assets in the domestic country.
- The foreign exchange flows in the country due to speculative activities.
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संबंधित प्रश्न
(a) In which sub-account and on which side of balance of payments account will foreign investments in India be recorded? Given reasons.
(b)What will be the effect of foreign investments in India on exchange rate? Explain.
Recently Government of India has doubled the import duty on gold. What impact is it likely to have on foreign exchange rate and how?
How can increase in foreign direct investment affect the price of foreign exchange?
Explain the effect of appreciation of domestic currency on imports.
Why does the demand for foreign currency fall and supply rise when its price rises? Explain.
Visits of foreign countries for sightseeing etc. by the people of India is on the rise. What will be its likely impact on foreign exchange rate and how?
The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?
What is 'appreciation' of domestic currency? What is its likely effect on exports and how?
What is the relationship between demand for foreign exchange and exchange rate?
What is the relationship between supply of foreign exchange and exchange rate?
Other things remaining unchanged, when in a country the price of foreign currency rises, national income is ______.
______ rate is the ratio of foreign prices to domestic prices.
Suppose it takes 1.25 yen to buy a rupee, and the price level in Japan is 3 and the price level in India is 1.2 Calculate the real exchange rate between India and Japan (the price of Japanese goods in terms of Indian goods).
Identify which of the following statement is true?
When domestic currency loses its value in relation to a foreign currency in the international money market, it is a situation of:
Foreign exchange refers to:
Suppose the exchange rate was \[\ce{$}\]1 = ₹ 80 and later changed to \[\ce{$}\]1 = ₹ 92. What will be its effect on the following?
Import of wheat by India from the USA
Suppose the exchange rate was \[\ce{$}\]1 = ₹ 80 and later changed to \[\ce{$}\]1 = ₹ 92. What will be its effect on the following?
Import of gold jewellery by the USA from India
