Question

Which of the following is a source of supply of foreign exchange ​

Answer 1

Two sources of supply of foreign exchange are: (i) Export of goods and services from domestic country to foreign country. (ii) Foreign direct investment. (i) Payment of loans and interest to international organisations.

Answer 2

The complete question is

Which of the following is a source of supply of foreign exchange?

Options:

A) Exports

B) Grants and donations

C) Loans

D) All of the above

The correct answer is

D) All of the above

The 3 sources of supply of foreign exchange are :

1) Exports:

• Exports of products and services are a very important supply of interchange.

2) Grants and donations from the remainder of the world:

• a major quantity of foreign exchange flows from made poor countries through the method of grants and donations.

3) Loans kind rest of the world:

• It refers to the borrowings from the rest of the world. It contributes to the provision of foreign change

The supply flow of interchange comes from the people that receive it because of the subsequent reasons.

1. Exports of products and services:

• The supply of foreign exchange comes through exports of goods and services.

2. Foreign investment:

• the number that foreigners invest within their home country will increase the provision of foreign exchange.

3. Remittances unilateral transfers abroad:

• offer of foreign exchange increases in the variety of gifts and different remittances from abroad.

4. Speculation:

offer of foreign exchange comes from those that need to invest on the worth of foreign exchange.

#SPJ3