SSC Economics Sample Paper NCERT Sample Paper-5

  • question_answer
    What is the effect of appreciation of domestic currency on imports and exports?

    A)  Exports are cheaper when denominated in other currencies

    B)  Imports are dearer when denominated in domestic currencies

    C)  Both a and b

    D)  None of the above

    Correct Answer: D

    Solution :

    [d] An appreciation means an increase in the value of a currency. It means a currency is worth more in terms of foreign currency. Similarly Exports becomes more expensive.

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