Practicing Success
Which of the following is NOT a reason for depreciation of domestic currency? |
Increase in demand for foreign exchange Increase in supply of foreign exchange Decrease in supply of foreign exchange Both 1 and 3 |
Increase in supply of foreign exchange |
Depreciation of currency refers to decrease in the value of domestic currency in terms of foreign currency. A rise in exchange rate implies depreciation of Indian rupee. Causes for rise in exchange rate are:
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