Consider a situation where the dollar va

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Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Consider a situation where the dollar value now is 50 rupees, which earlier was 70 rupees. What does this mean?

Options:

Depreciation of Indian rupee

Appreciation of Indian rupee

Devaluation of Indian rupee

Revaluation of Indian rupee

Correct Answer:

Appreciation of Indian rupee

Explanation:

One dollar earlier was 70 rupees and now is 50 rupees. This mean dollar depreciated and Indian rupee appreciated.