Question

identify which of the following statement is true.
a. Fixed Exchange rate is also called floating exchange rate.
b. Decrease in demand for foreign currency leads to appreciation of domestic currency.
c. Dirty floating is sale and purchase of currency by World Bank
d. Import from abroad is a source of supply of foreign Exchange.​

Answer 1

Answer:

b. Decrease in demand for foreign currency leads to appreciation of domestic currency.

Explanation:

Appreciation of domestic currency makes foreign goods relatively cheaper, which leads to increase in imports.

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