Question : The Indian government banned import of fans with a view to promote domestic manufacturing and cut imports of spices.
How this will impact demand of foreign currency?
 

Option 1: Demand for foreign currency will fall
 

Option 2: Demand for foreign currency will rise
 

Option 3: Supply for foreign currency will fall
 

Option 4: Supply for foreign currency will rise
 

Question : The Indian government banned import of cars with a view to promote domestic manufacturing and cut imports of batteries.
How this will impact demand of foreign currency?
 

Option 1: Demand for foreign currency will fall
 

Option 2: Demand for foreign currency will rise
 

Option 3: Supply for foreign currency will fall
 

Option 4: Supply for foreign currency will rise
 

Question : It is determined by forces of demand and supply.
 

Option 1: Foreign exchange
 

Option 2: Foreign exchange market
 

Option 3: Foreign exchange rate
 

Option 4: None of the above.
 

Question : It refers to the rate at which currency is exchanged for others.
 

Option 1: Foreign exchange
 

Option 2: Foreign exchange market
 

Option 3: Foreign exchange rate
 

Option 4: None of the above.
 

Question : Which of the following steps should taken by the central bank if there is excessive rise in the foreign exchange rate?

Option 1: Supply foreign exchange from its stock
 

Option 2: Demand more of other foreign exchange
 

Option 3: Not intervene in the market as exchange rate is determined by the market forces

Option 4: Help central government to stabilize foreign exchange rate