Practicing Success
Which of the following are true- a) When Indian government issues fresh currency with no change in forex reserves, Rupee will appreciate with respect to other currencies. b) If an Indian expects Rupee to depreciate in near future, he will exchange Rupee for Dollar today and convert Dollar back to Rupee when Rupee depreciates. |
Both a and b are true a is true, b is not b is true, a is not Both a and b are false |
b is true, a is not |
When Indian government issues fresh currency with no change in forex reserves, Rupee will depreciate with respect to other currencies. 1 dollar = 70 rs, After deprecation the exchange rate becomes. 1 dollar = 75Rs. The individual will trade for Rs 5 profit. |