Multiple Choice
India is facing continuous deficit in its balance of payments. In the foreign exchange market rupee is expected to
A) Depreciate.
B) Appreciate.
C) Show no specific tendency.
D) Depreciate against currencies of the countries with positive balance of payment and appreciate against countries with negative balance of payment.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: The demand for domestic currency in the
Q4: Hedging transaction is indicated by<br>A)Transactions in odd
Q5: Where an option is out of the
Q6: The following statement with respect to currency
Q7: If PPP holds<br>A)The nominal exchange rate will
Q9: For the balance kept in the margin
Q10: An option at-the-money when<br>A)The strike price is
Q11: Banks permitted to run option book is
Q12: The effect of speculation on exchange rate
Q13: For contingency exposure of foreign exchange, the