State four sources of supply of foreign exchange.

Supply of Foreign Exchange (US dollars). Supply of foreign exchange comes from foreigners who make us payment in foreign exchange (currency) for different purposes. The following factors cause supply of foreign exchange. As a result foreign currencies flow into domestic economy.
(i)    Sources of supply of foreign exchange.
(i)    When foreigners purchase home country's (say India's) goods and services through exports (by India).
(ii)    When foreigners invest in bonds and equity shares of the home country (say, India).
(iii)    When currency dealers and speculators cause flow of foreign currency in the domestic economy.
(iv)    When Indian workers working abroad send their savings to families in India. (Remittances).
(v)    When foreign tourists come to India.
Pursuing the above example, the Indian firms and the government which export Indian goods to USA will earn dollars from American residents. Similarly, Americans who travel in India and use services of Indian hotels and transport, will also supply dollars to be converted into rupees for meeting these expenses. Again, American companies and the individuals who buy assets in India will also supply dollars. Besides supply of dollars by the Indians working in USA popularly called 'remittances from USA' also add to the supply of dollars.