12th Class Economics Foreign Exchange Rate Question Bank MCQs - Foreign Exchange Rate

  • question_answer
    If Rs. 75 are required to buy 1 US dollar, instead of Rs. 78 per US Dollar, this situation is indicating that

    A) Domestic currency has appreciated

    B) Domestic currency has depreciated

    C) Rupee value of import bill will increase

    D) Rupee value of export bill will decrease

    Correct Answer: A

    Solution :

    As less units of domestic currency are required to exchange one unit of foreign currency, this situation refers to appreciation of domestic currency.


You need to login to perform this action.
You will be redirected in 3 sec spinner