State three sources each of demand and supply of foreign exchange.[3 marks question]
Macroeconomics- Chapter 6 (Open economy macroeconomics)- Lesson 2 (Meaning and Type of Exchange Rate, Determination of Exchange Rate)- under the topic 'Determination of Exchange Rate under the Flexible Exchange Rate Regime'
demand for foreign exchange-1) for importing goods and services2) for making transfer payments such as gifts3) for making investments in rest of the world in physical and financial assets
supply of foreign exchange-1) from exporting goods and services2) from receiving factor payments such as compensation of employees3) from investmnet by foreign companies in physical and financial assets of the country