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
- 24764 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
What do you understand by financial inclusion?
Who are the partnering organizations with ifbi?
WHAT ARE THE SECTIONS OF SOX THAT ARE RELATED TO INTERNAL CONTROL?
What are the features of debentures?
How will you define Bank Rate?
Comment on Demonetization?
Do you know the currency of different countries?
What is the Full form of RTGS and what are the features and benefits?
What is fixed assets/ capital employed ratio? What does it indicate?
What is the monetary policy of RBI and what are the various instruments used to control it?
In which year indian banks association (iba) was formed and initially with how many members?
hi frends, i completed mba in 2008,i worked as finance reseach associate in opi comp through consultancy. now my problem is when iam going other comp inteview they ask me is mab finace candidate selected through consultancy. can any body tell me how can i tell ans this
Are Utility Services Affected?
Tell something about your recent college project.
Do you know about RBI key monetary policy rates and their current values?
