Economic Awareness - Sectors of Indian Economy
Which of the following is a likely consequence of appreciation of the Indian Rupee against the US Dollar?
Which of the following is a likely consequence of appreciation of the Indian Rupee against the US Dollar?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand appreciation effect
Appreciation means the domestic currency gains value relative to foreign currencies.Step 2: Analyze impact on imports and inflation
Stronger rupee makes imports cheaper, which tends to reduce inflation.Final Answer:
Imports become cheaper and inflation decreases → Option BQuick Check:
Appreciation effect = imports cheaper and inflation decreases ✅
Quick Trick: Appreciation = imports cheaper, inflation down.
Common Mistakes:
MISTAKES- Mixing appreciation effects with depreciation effects on inflation.
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