Question

Study the following case/situation and express your opinion.

Mr. X deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from the bank. He invests his funds in the equity shares.

i) Name the market from where does Mr.X borrow money?

ii) Name the market where does Mr. X invests his funds?

iii) Which type of currency is required for the international market?

Answer 1

1. Mr. X borrows money from the capital market.
2. Mr. X invests his funds in the regulated market.
3.  The different foreign currency is required by Mr. X for the international market.