मराठी

How Can Increase in Foreign Direct Investment Affect the Price of Foreign Exchange? - Economics

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प्रश्न

How can increase in foreign direct investment affect the price of foreign exchange?

उत्तर

When there is an increase in foreign direct investment, the supply of foreign currency increases, and thus, the price of foreign exchange falls.

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2012-2013 (March) Delhi Set 1

व्हिडिओ ट्यूटोरियलVIEW ALL [1]

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.


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a. Positive
b. Negative
c. Positive and negative both
d. No effect


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The government has started promoting foreign capital. What is its economic value in the context of Production Possibilities Frontier?


Define foreign exchange rate.


What is 'appreciation' of domestic currency? What is its likely effect on exports and how?


When price of a foreign currency rises, its demand falls. Explain why. 


Would the central bank need to intervene in a managed floating system? Explain why.


Answer the following question.
State any two factors responsible for the inflow of foreign currency.


What is the relationship between supply of foreign exchange and exchange rate?


______ rate is the price of one currency in terms of another. 


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:


Suppose the exchange rate was \[\ce{$}\]1 = ₹ 80 and later changed to \[\ce{$}\]1 = ₹ 92. What will be its effect on the following?

Export of cotton garments by India to 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?

Export of technical knowledge by the USA to India


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Import of gold jewellery by the USA from India


Briefly discuss the fixed exchange rate system of determining foreign exchange rate.


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