Q
Which of the following statements regarding the market for foreign currency exchange is true ?
-
A
A. An increase in pakistan’s net exports decreases the supply of rupees and the rupees depreciates
-
B
B. An increase in pakistan’s net exports increase the demand for rupees and the rupees appreciates
-
C
C. An increase in pakistan’s net exports increases the supply of rupees and the rupees depreciates
-
D
D. An increase in pakistan’s net exports decrease the demand for rupees and the rupees appreciates
Correct Answer:
B. B. An increase in pakistan’s net exports increase the demand for rupees and the rupees appreciates
