Interested to Buy Any Domain ? << Click Here >> for more details...
how does rupee strengthen when the Reserve Bank of India
sells dollars in the market????
please i need an answer
- 7 Answers
- 24346 Views
- I also Faced
- E-Mail Answers
Answer Posted / venu
IN MONEY MARKET ONE OF THE DETERMINANT OF VALUE OF CURRENCY IS "SUPPLY AND DEMAND". WE ALL KNOW THAT WHEN DEMAND IS MORE ITS VALUE WILL GO HIGH, ON THE OTHER HAND IF SUPPLY IS MORE THAN DEMAND THEN ITS VALUE GOES DOWN.
THE SAME PRINCIPLE CAN APPLY IN THIS CASE. BY SELLING DOLLAR RBI PUMPS DOLLAR CURRENCY IN TO MARKET WHILE AT THE SAME TIME IT BUYS BACK RUPEE(BY SELLING DOLOR)THIS ACTIVITY CREATES MORE DEMAND FOR RUPEE.... BECAUSE OF THESE EFFECTS WE CAN OBSERVE CHANGES IN DOLLAR VS RUPEE VALUE....
| Is This Answer Correct ? | 11 Yes | 0 No |
Post New Answer View All Answers
Accounts payable questions
What is the use of IFSC Code in the online transaction?
Discuss about Finance Commission and its functions?
Do you know why SBI is different from other banks?
Why do you need to subtract cash from the enterprise value formula?
dicsuss with appropriate examples the firm's asset management decisions
What do you understand by overdraft?
How many nations take part in G 20 Summit? Can you name them?
What is a deferred tax asset?what is bank? What are the types of banks?
What Are Accrued Expenses And When Are They Recorded?
What is the key difference between private sector banks and the government sector banks?
Who conducts national banking entrance exam (nbet)?
How do you deal with different stakeholders?
What is the education qualification required for po exam?
When should banks not pay the cheque?
