If the Pakistan receives larger than expected revenues from exports then the exchange value of its currency will tend to ?
Correct answer: D. appreciate
- A. not be affected
- B. fluctuate more than if exports were lower
- C. depreciate
- D. appreciate
Explanation
Higher-than-expected export receipts increase foreign demand for Pakistan's currency because overseas buyers need it to pay domestic exporters. This raises demand for the currency and tends to make it appreciate.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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