If a factor increases the demand for _____ goods relative to _____ goods, the domestic currency will appreciate.

Related MCQs

• Anything that increases the demand for foreign goods relative to domestic goods tends to _____ the domestic currency because domestic goods will only continue to sell well if the value of the domestic currency is _____.
• The demand for domestic currency in the foreign exchange market is indicated by the following transactions in balance of payment.
• An increase in productivity in a country will cause its currency to _____ because it can produce goods at a _____ price.
• Maintaining a foreign currency account is helpful to
• The immediate (two-day) exchange of one currency for another is a
• Higher tariffs and quotas cause a country’s currency to _____ in the _____ run.
• Lower tariffs and quotas cause a country’s currency to _____ in the _____ run.
• In the foreign exchange market, if the interest rate on foreign deposits increases, holding everything else constant,
• Which of the following statements is/are correct? A) NBFCs does not hold a banking license. B) NBFC can issue Demand Drafts like banks.