Question

The value of US Dollar 1$hasgonedownfrom$Rs. 67$to$Rs. 65$. It means that ________________.

• A. Indian rupee has appreciated
• B. US Dollar has depreciated
• C. Both (a) and (b)
• D. None of the above

Answer 1

The correct option is C Both (a) and (b)

Depreciation of US dollar will occur when Rs 65 have to be paid to exchange one US Dollar instead of Rs 67 per dollar as less rupees are needed to buy one dollar. Whereas, Indian rupee has appreciated as it is a situation of rise of foreign exchange rate.