Discuss the effect of an increase in the Australian Dollar money supply in the Rupee /...

Discuss the effect of an increase in the Australian Dollar money supply in the Rupee / dollar exchange rate?

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Ans: Th rate of exchange of indian rupee wrt austrailian dollar is 1 AUS Dollar = Rs. 48.68 Indian rupee. It means that austrailian dollar is stronger than our indian currency rupee.

- This might happen due to most developed country like austrailia aganst developing country india. Indian economy is not so much better than iaustrailian economy.

- If austrailian dollar supply increases in our indian business environment that means vast changes of export and import of goods and services happened in between two country like india and austrailia.

- Here austraila imports reversely we can say that india exports goods and services to austrailia and reserves more aus dollar with it. and that makes indian rupee stronger against aus dollar at exchange market.

- The exchange which is as now 1 aus dollar = rs 48.68 rupee changes and aus dollar value decreases and indian rupee value increase. it is good for india.

- The GDP od india increases boosting indian economic growth.

jeff jeffy answered 1 year ago

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