Question
Consider the following effects on the foreign exchange
rate and identify if they are true or false: I. An increase in U.S. demand for Indian goods increases the supply of dollars in the market, leading to a decrease in the dollar's exchange rate relative to the rupee. II. Higher interest rates in India compared to the U.S. will attract U.S. investments, increasing the supply of dollars and depreciating the dollar. III. Capital outflows from India to other countries increase the supply of rupees and depreciate the rupee.Solution
Statement I is True: Increased U.S. demand for Indian goods leads to more dollars being sold for rupees, increasing the supply of dollars, which decreases its value relative to the rupee. Statement II is True: Higher interest rates in India attract U.S. investments, increasing the supply of dollars in India and causing the dollar to depreciate relative to the rupee. Statement III is True: Capital outflows from India mean that Indian investors are converting rupees into foreign currencies, increasing the supply of rupees and leading to its depreciation.
Two pipes A and B can fill a tank in 24 minutes and 30 minutes respectively, while a third pipe C can empty it in 40 minutes. If all three pipes are ope...
Pipe ‘A’ can fill a tank in 25 hours while pipe ‘B’ can empty it in 30 hours. They were operated on alternate hours starting with pipe ‘A’. ...
Pipe A alone fill the tank in x hours and Pipe B alone fill the tank in (x – 7) hours. If the efficiency of pipe B is triple of pipe A and pipe A ...
Pipe ‘A’ can fill a 150-litre tank in 15 hours. If pipe ‘A’ is 25% more efficient than pipe ‘C’ whereas pipe ‘B’ is 50% more efficient t...
- There are two inlet pipes 'M', 'N' and one outlet pipe 'O' in a tank. ‘M’ and ‘N’ can fill the tank in 12 minutes and 6 minutes respectively. ‘O�...
Pipe ‘X’ alone can fill a tank in 20 hours. When pipe ‘X’ and ‘Y’ are opened together, they can fill 60% of the same tank in 6 hours. Find t...
Pipe ‘A’ can fill a tank in 12 hours while pipe ‘B’ takes 15 hours to empty it. Pipe ‘A’ is opened alone when the tank was empty and after 1...
Pipe A can fill the empty tank in 25 minutes while pipe B can empty the half-filled same tank in 15 minutes. What is the time require to fill (80/3) % o...
Pipe A can empty a completely filled tank in 40 hours. Pipe B and A together can fill an empty tank completely in (z+4) hours. The efficiency of pipe B ...
Pipe ‘A’ and pipe ‘B’, together can fill 20% of a tank in 6 hours while pipe ‘C’ takes 35 hours to empty it. ...