Read the two statements and choose the correct option.
I. A fall in the rupee price of a dollar is an appreciation of the rupee.
II. An appreciation of the rupee makes imports more expensive in rupees.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Fewer rupees per dollar means a stronger rupee. I is true.
With a stronger rupee, a dollar-priced import costs fewer rupees, so imports become cheaper. II is false.

Ten questions from Foreign Exchange Rate, at your own pace.

Ten questions from Foreign Exchange Rate, at your own pace.

Read the two statements and choose the correct option.I. A fall in the rupee price of a dollar is an appreciation of the rupee.II. An appreciation of the rupee makes imports more expensive in rupees.