Question

What effect does an increase in foreign investment in

Q: Answer-What effect does an increase in foreign investment in India have on the exchange rate of the rupee?

Increased foreign investment in India increases the demand for the rupee as investors convert their dollars to rupees to invest, leading to an appreciation of the rupee. This increase in supply of foreign currency dollars and demand for the rupee strengthens its value.

India have on the exchange rate of the rupee?

A It leads to depreciation of the rupee.

B It has no effect on the rupee's value.

C It leads to appreciation of the rupee.

D It causes the rupee to fluctuate wildly.

E It increases the fixed exchange rate value of the rupee.

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What effect does an increase in foreign investment in

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