2757EconomicsMedium
Which of the following statements regarding the market for foreign currency exchange is true?
AAn increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates
BAn increase in Pakistan’s net exports increases the Supply of rupees and the rupees depreciates
CAn increase in Pakistan’s net exports decrease the demand for rupees and the rupees appreciates
DAn increase in Pakistan’s net exports decreases the supply of rupees and the rupees depreciates
Correct answer
A. An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates
Explanation
The correct answer is An increase in Pakistan’s net exports increase the demand for rupees and the rupees appreciates.