Consider the following statements about undervalued currency and select the correct ones using the codes given below.
1. Countries make their currencies undervalued to make trade gains
2. Foreign exchange market intervention through heavy purchase of foreign currencies makes undervalued currency.
The IMF’s is undergoing significant transition in the post crisis global economy. Which of the following statements are indicative of this transition? Select the correct answer using the codes given below.
The RBI makes an intervention in the foreign exchange market by purchasing dollars on a particular day. Which of the following can be an outcome of such an intervention? Choose the correct answer using the codes given below.
The Rupee’s exchange rate with US Dollar is moving from Rs 66 to Rs 55. Which of the following outcomes are correct related to this exchange rate movement? Choose the correct answer using the codes given below.
1. Imports into India are going to decrease
2. Domestic commodities have become costlier in the international market
3. Hedging improves the condition of exporters.
4. Foreign commodities become cheaper in the Indian market.