Question:

Identify, which of the following is not a source of demand for foreign exchange.

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Remember: Foreign exchange demand comes from imports, gifts, tourism, and investments. Loans typically represent foreign exchange supply.
  • Imports of goods and services
  • Gifts by Indians to their families living abroad
  • Indian tourists visiting foreign countries
  • Loans from Rest of the World
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The Correct Option is D

Solution and Explanation

\text{Demand for foreign exchange arises from imports, gifts, and tourism. Loans from the rest of the world represent a source of supply for foreign exchange, not demand.}
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