MCQOPTIONS
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| 1. |
Which of the following statements regarding the market for foreign currency exchange is true ? |
| A. | An increase in Pakistan’s net exports decreases the supply of rupees and the rupees depreciates |
| B. | An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates |
| C. | An increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates |
| D. | An increase in Pakistan’s net exports decrease the demand for rupees and the rupees appreciates |
| Answer» C. An increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates | |