Question

4. Identify the correct pair of statements from the following column i and column 11. (Choose the correct alternative)
Column 1
Column Il
A Supply curve of foreign exchange
(i) Upward sloping curve
B Export from India to Japan
(ii) Demand for foreign exchange from India
C Repayment of international loans
(iii) Source of supply of foreign exchange
D Depreciation of domestic currency
(iv) Government plays important role
Alternatives:
(a) A-i
(b) B-ji
(c) C-ji
(d) D-iv​

Answer 1

Answer:

a) A-i

Explanation:

Supply curve is always upward sloping, as opposed to demand curve, which is downward sloping. This is because the relation b/w supply & price is direct. As the value of foreign currency increases, so will its supply.