Download App

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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsOpen Economy Macroeconomics3 Marks
Question
When price of a foreign currency rises, its supply also rises. Explain why.
✓

Answer

When price of foreign currency rises it makes exports cheaper. This leads to rise in demand for exports. As a result supply of foreign currency rises.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Question" from Open Economy Macroeconomics→Open Economy Macroeconomics — all question types→Economics STD 12 Humanities & Commerce question papers→Rajasthan Board STD 12 Humanities & Commerce question papers→Rajasthan Board question paper generator→

Similar questions

Give the relationship between the revenue deficit and the fiscal deficit.
→
Giving reason, state whether the following statements are true or false.
Bread is always a consumer good.
→
Classify the into consumer, intermediate or capital goods.
Passenger bus service used by a consumer household.
→
Explain any one objective of Government Budget.
→
If Real GDP is Rs. 200 and Price Index (with base = 100) is 110, Calculate Nominal GDP.
→
Explain the impact of rise in exchange rate on national income.
→
When exchange rate of foreign currency falls, its demand rises. Explain, how?
→
Distinguish between final goods and intermediate goods. Give an example of each.
→
"All Producer Goods are not Capital Goods”. Explain.
→
Explain the "medium of exchange" function of money.
→