Question

Study the following case/situation and express your opinion:

Mr. A deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from a commercial bank. He invests his funds in the equity shares.

1. From where does Mr. A borrow money?
2. Name the market where does Mr. A invest his funds.
3. Which type of currency is required for the international market?

Answer 1

1. Mr. A borrows money from a commercial bank. 
2. Mr. A invests his funds in equity shares, which means he is investing in the stock market. 
3. For international markets and transactions, Mr. A requires foreign currencies.