

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 capital outflow increase the supply of rupees and the rupees depreciate |
B. | An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees appreciate |
C. | An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees depreciate |
D. | An increase in Pakistan’s net capital outflow increase the supply of rupees and the rupees appreciate |
Answer» B. An increase in Pakistan’s net capital outflow increase the demand of rupees and the rupees appreciate | |