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Open Economy Macroeconomics — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsOpen Economy Macroeconomics2 Marks
Question
Explain any three factors which are responsible for inflow of foreign currency.
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Answer

Factors responsible for inflow of foreign capital are as follows:
  1. Foreigners purchasing goods of home country by the way of exports.
  2. Foreign investment in home country through joint ventures and through financial market operation.
  3. Foreign currency inflow into the economy due to currency dealers and speculators.

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