plzz ans this one asap...
Dear Student
Demand For Foreign Exchange : (a) demand for foreign exchange will rise or increase as people wants money to spend . Since, supply remain unchanged, the exchange rate will rise. (b) Increase import will require foreign exchange to make payment, (d) speculators demand foreign currency in the present period with the aim of selling it in future at higher prices.
Supply of Foreign Exchange: (c) Tourist will being foreign currency in the country which will increase its supply,(e) Increase in export will bring more foreign exchange into the country. Demand for the foreign exchange remain unchanged, exchange rate will fall.
Regards
Demand For Foreign Exchange : (a) demand for foreign exchange will rise or increase as people wants money to spend . Since, supply remain unchanged, the exchange rate will rise. (b) Increase import will require foreign exchange to make payment, (d) speculators demand foreign currency in the present period with the aim of selling it in future at higher prices.
Supply of Foreign Exchange: (c) Tourist will being foreign currency in the country which will increase its supply,(e) Increase in export will bring more foreign exchange into the country. Demand for the foreign exchange remain unchanged, exchange rate will fall.
Regards