Economic Awareness - Sectors of Indian Economy
What is the immediate effect on exports when the domestic currency depreciates against foreign currencies?
What is the immediate effect on exports when the domestic currency depreciates against foreign currencies?
easy Q11 of 15
Step-by-Step Solution
Step 1: Identify the concept
The question tests the effect of currency depreciation on exports, a fundamental economic principle.Step 2: Apply the concept
When the domestic currency depreciates, Indian goods become cheaper for foreign buyers, leading to an increase in exports.Final Answer:
Exports become cheaper and increase → Option AQuick Check:
Depreciation effect on exports = cheaper and increase ✅
Quick Trick: Depreciation makes exports cheaper abroad.
Common Mistakes:
MISTAKES- Confusing depreciation with appreciation effects on exports.
Master "Sectors of Indian Economy" in Economic Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Economic Awareness Quizzes