From the following, identify the correct reasons that may affect the supply of foreign exchange in an economy:
I. Purchase of land in England by an Indian
II. Foreign tourists visiting Taj Mahal
III. Donation of 500 million dollars from Microsoft
IV. Indian students going to Australia for studies
From the following, identify the correct reasons that may affect the supply of foreign exchange in an economy:
I. Purchase of land in England by an Indian
II. Foreign tourists visiting Taj Mahal
III. Donation of 500 million dollars from Microsoft
IV. Indian students going to Australia for studies
Show Hint
- I and II
- II and IV
- II and III
- I and IV
The Correct Option is C
Solution and Explanation
- Reason II (Foreign tourists visiting Taj Mahal) will bring foreign exchange into India as they spend money during their visit.
- Reason III (Donation of 500 million dollars from Microsoft) will also increase foreign exchange supply as it is an inflow of funds into the economy.
Conclusion: The correct answer is (C), as foreign tourists and donations will directly impact the supply of foreign exchange.
Top Questions on Foreign exchange market
- Match List-I with List-II \[\begin{array}{|c|c|} \hline \textbf{Concepts} & \textbf{Their meaning} \\ \hline \text{(A) Foreign Exchange Swaps} & \text{(I) is a forward contract for standardized currency amounts and selected calendar dates traded on an organized market.} \\ \hline \text{(B) Forward Transaction} & \text{(II) refers to the avoidance of a foreign exchange risk or covering of an open position.} \\ \hline \text{(C) Foreign Exchange Futures} & \text{(III) refers to a spot sale of a currency combined with a forward repurchase of the same currency as part of a single transaction.} \\ \hline \text{(D) Hedging} & \text{(IV) refers to an agreement today to buy or sell a specified amount of a foreign currency at a specified future date at a rate agreed upon today.} \\ \hline \end{array}\] Choose the correct answer from the options given below:
- CUET (PG) - 2025
- Economics
- Foreign exchange market
- Identify, which of the following is not a source of demand for foreign exchange.
- CBSE CLASS XII - 2025
- Economics
- Foreign exchange market
- Read the following statements carefully:
Statement 1: The price of a given currency in terms of another is known as bank rate.
Statement 2: Demand curve for foreign exchange is a downward sloping curve.- CBSE CLASS XII - 2025
- Economics
- Foreign exchange market
- For a given foreign currency, if the forward exchange rate of delivery is 20 and the current value of spot exchange rate is 8, then the forward premium will be _________ (rounded off to two decimal places).
- GATE XH-C1 - 2024
- International Economics
- Foreign exchange market
From the following data, estimate the value of Net Indirect Taxes (NIT):
- GATE XH-C1 - 2024
- Economics
- Foreign exchange market
Questions Asked in GATE XH-C1 exam
Two players \( A \) and \( B \) are playing a game. Player \( A \) has two available actions \( a_1 \) and \( a_2 \). Player \( B \) has two available actions \( b_1 \) and \( b_2 \). The payoff matrix arising from their actions is presented below:
Let \( p \) be the probability that player \( A \) plays action \( a_1 \) in the mixed strategy Nash equilibrium of the game.
Then the value of p is (round off to one decimal place).- GATE XH-C1 - 2025
- Logical Reasoning
Eight students (P, Q, R, S, T, U, V, and W) are playing musical chairs. The figure indicates their order of position at the start of the game. They play the game by moving forward in a circle in the clockwise direction.
After the 1st round, the 4th student behind P leaves the game.
After the 2nd round, the 5th student behind Q leaves the game.
After the 3rd round, the 3rd student behind V leaves the game.
After the 4th round, the 4th student behind U leaves the game.
Who all are left in the game after the 4th round?
Here are two analogous groups, Group-I and Group-II, that list words in their decreasing order of intensity. Identify the missing word in Group-II.
Abuse \( \rightarrow \) Insult \( \rightarrow \) Ridicule
__________ \( \rightarrow \) Praise \( \rightarrow \) Appreciate
The 12 musical notes are given as \( C, C^\#, D, D^\#, E, F, F^\#, G, G^\#, A, A^\#, B \). Frequency of each note is \( \sqrt[12]{2} \) times the frequency of the previous note. If the frequency of the note C is 130.8 Hz, then the ratio of frequencies of notes F# and C is:
- Had I learnt acting as a child, I ________ a famous film star.
Select the most appropriate option to complete the above sentence.