Q. 14

What determ

Answer :

The following factors determine the flow of foreign exchange into the country:

a. When foreigners purchase goods and services from the home country through Exports.

b. When foreigners purchase assets in the home country.

c. When speculation leads to the inflow of foreign exchange.

d. When foreigners make an investment in the form of bonds and equity shares of the home country.

e. When foreigners undertake a tour in the home country.

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