Consider the following statements with reference to money supply and exchange…

PYQ UPPSC LT Grade (Assistant Teacher) 2025

Consider the following statements with reference to money supply and exchange rate. 1. Money supply affects the exchange rate through change in the price level. 2. Money supply affects the exchange rate through change in the interest rate. Select the correct answer from the code given below.

  1. A.

    Both 1 and 2

  2. B.

    Neither 1 nor 2

  3. C.

    Only 1

  4. D.

    Only 2

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