Multiple choice

If the dolar rate is changed from Rs37.50 to Rs36.50 there is an

  1. Appreciation of the rupee

  2. Depreciation of the rupee

  3. Neither a Nor b

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When the amount of rupees required to buy one dollar decreases (from 37.50 to 36.50), the value of the rupee has increased relative to the dollar, which is called appreciation.

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