Question

A change from $Rs.140=2$ pounds to $Rs.60=1$ pounds indicates that Rs. is:

• A. Appreciating
• B. Depreciating
• C. Neither (a) nor (b)
• D. Either (a) or (b)

Answer 1

The correct option is A Appreciating

A change from RS 140 = 2 pounds to Rs 60 = 1 pounds indicates that rupees is appreciating. Appreciation of domestic currency is a situation of a fall in exchange rate. Less rupees are needed to buy one pound.