Question

If 120 Rupees are required to buy 2 dollars instead of 100 Rupees for 1 dollar earlier, then:

• A. both (a) and (c)
• B. rupee value of import bill will decrease
• C. domestic currency has depreciated
• D. domestic currency has appreciated

Answer 1

The correct option is A

both (a) and (c)

This is a case of appreciation of the domestic currency because of which the import bill will be lower.