Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

"First of all I would look at it as not rupee sliding, I would look at it as dollar strengthening, dollar strengthening incessantly" said Nirmala Sitaraman after attending the Annual meetings of the IMF and the world Bank

Based on the above passage, answer the questions mentioned below :

Strengthening of dollar reflects :

Options:

Appreciation of domestic currency

No change of domestic currency

Appreciation of US dollar

Depreciation of US dollar

Correct Answer:

Appreciation of US dollar

Explanation:

The correct answer is option (3) : Appreciation of US dollar

When someone refers to the "dollar strengthening, " it means the value of the U.S. dollar is increasing in relation to other currencies, indicating appreciation of the U.S. dollar.