Assertion (A): An appreciation of the rupee helps Indian exporters.
Reason (R): After an appreciation, each dollar earned from exports converts into fewer rupees.

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: fewer rupees per dollar is what appreciation means.
So exporters earn fewer rupees and their goods cost more abroad: appreciation hurts them. A is false.

Concept: Appreciation and exporters
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsThe exchange rate

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

Assertion (A): An appreciation of the rupee helps Indian exporters.Reason (R): After an appreciation, each dollar earned from exports converts into fewer rupees.

Explanation

Assertion (A): An appreciation of the rupee helps Indian exporters.
Reason (R): After an appreciation, each dollar earned from exports converts into fewer rupees.