Multiple choice

What was the main reason for the India's foreign exchange reserve decline in 2007?

  1. Heavy demand of the same by foreign tourists

  2. Import of wheat from Pakistan and South Korea

  3. Appreciation of rupee

  4. Instability in coalition of government in centre

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In 2007, the Indian rupee experienced significant appreciation against the US dollar. This appreciation made exports less competitive and impacted the valuation of foreign exchange reserves.

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