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User_gary Posted 18 years ago
Grammar
to augment supplies
Checking inflation apart, the RBI is not too happy over the prospect of capital flows into the economy declining. Foreign institutional investors (FIIs) have begun to head for the door and have pulled out $9 billion from the domestic stock market so far this year.
But the central bank, flush with foreign reserves, has been selling dollars to augment supplies in the market. This is precisely what has provided a cushion for the rupee since Tuesday.
I can understand the pink-coloured parts as "to increase supplies" but I'm confused which supply.
Here is what I understood overall (about the emboldened sentences) :
Before the economic crisis, US 1 dollar = 40 Rupees, but after crisis it went up and now US 1 dollar = 46.93 rupees. So the central bank,which has lots of US dollar, thinks that if they sell US dollar now in the Indian market they will get more rupees than before and they are doing it.
Please help me.
But the central bank, flush with foreign reserves, has been selling dollars to augment supplies in the market. This is precisely what has provided a cushion for the rupee since Tuesday.
I can understand the pink-coloured parts as "to increase supplies" but I'm confused which supply.
Here is what I understood overall (about the emboldened sentences) :
Before the economic crisis, US 1 dollar = 40 Rupees, but after crisis it went up and now US 1 dollar = 46.93 rupees. So the central bank,which has lots of US dollar, thinks that if they sell US dollar now in the Indian market they will get more rupees than before and they are doing it.
Please help me.
Top answer
For anything, if there are fewer of them to buy, the price will be higher. If there are only a few of X, then the price of each X will be higher than if there are many Xs available. By releasing a bunch of American dollars into the currency market, it should lower the cost of a dollar in rupees.
- For anything, if there are fewer of them to buy, the price will be higher.
- If there are only a few of X, then the price of each X will be higher than if there are many Xs available.
- By releasing a bunch of American dollars into the currency market, it should lower the cost of a dollar in rupees.
- That makes it better for anyone in India who needs to buy things in American dollars.
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1 Answers
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For anything, if there are fewer of them to buy, the price will be higher.
If there are only a few of X, then the price of each X will be higher than if there are many Xs available.
By releasing a bunch of American dollars into the currency market, it should lower the cost of a dollar in rupees. That makes it better for anyone in India who needs to buy things in American dollars.
If there are only a few of X, then the price of each X will be higher than if there are many Xs available.
By releasing a bunch of American dollars into the currency market, it should lower the cost of a dollar in rupees. That makes it better for anyone in India who needs to buy things in American dollars.
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