Advertisements
Advertisements
प्रश्न
Explain the relationship between foreign exchange rate and demand for foreign exchange.
स्पष्ट करा
Advertisements
उत्तर
| Situation | Effect on Foreign Exchange Rate | Impact on Demand for Foreign Exchange |
| Domestic currency depreciates (weaker) | Exchange rate rises (foreign currency becomes costlier) | Demand for foreign exchange falls |
| Domestic currency appreciates (stronger) | Exchange rate falls (foreign currency becomes cheaper) | Demand for foreign exchange rises |
shaalaa.com
या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?
