Assertion (A): A depreciation of the rupee makes imports cheaper for Indians.
Reason (R): After depreciation, more rupees are needed to buy each dollar.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

R is true: that is what depreciation means.
So dollar-priced imports cost more rupees, not fewer. A is false.

Concept: Depreciation and imports
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe flexible rate: depreciation and appreciation

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Assertion (A): A depreciation of the rupee makes imports cheaper for Indians.Reason (R): After depreciation, more rupees are needed to buy each dollar.

Explanation

Assertion (A): A depreciation of the rupee makes imports cheaper for Indians.
Reason (R): After depreciation, more rupees are needed to buy each dollar.