Question:
If the value of Indian Rupee falls against the US Dollar, it is called:
If the value of Indian Rupee falls against the US Dollar, it is called:
Show Hint
Depreciation makes a country's exports cheaper for foreigners, which can help increase the volume of exports!
Updated On: May 14, 2026
- Appreciation
- Inflation
- Depreciation
- Deflation
Show Solution
Verified By Collegedunia
The Correct Option is C
Solution and Explanation
Step 1: Understanding the Concept:
In a flexible exchange rate system, the value of a currency changes based on market demand and supply.
Step 2: Detailed Explanation:
• Depreciation: A fall in the value of domestic currency in terms of foreign currency (e.g., if $\$1 = ₹80$ becomes $\$1 = ₹85$).
• Appreciation: An increase in the value of domestic currency (e.g., $\$1 = ₹80$ becomes $\$1 = ₹75$).
• Inflation/Deflation: These terms refer to the internal purchasing power of money (price levels within the country), not the exchange rate.
Step 3: Final Answer:
The fall in the value of the Rupee against the Dollar is called Depreciation.
Was this answer helpful?
0
0
Top CUET Economics Questions
- How can morbidity be prevented?
A. Ensuring safe drinking water
B. Taking good education
C. Healthy and nutrative food
D. By employment generation
E. Sanitation
Choose the correct answer from the options given below: - Arrange the following of elasticities of demand in increasing order as per geometric method.
A. Mid-Point of the demand curve
B. Intercept on Y-axis
C. Between Mid-Point and intercept on X-axis
D. Between Mid-Point and intercept on Y-axis
E. Intercept on X-axis
Choose the correct answer from the options given below: - Match List I with List II
LIST I
LIST II
A Revenue Receipt I Increase in Liability B Capital Receipt II Do not increase in Asset C Revenue Expenditure III Increase in Asset D Capital Expenditure IV Do not increase Liability
Choose the correct answer from the options given below: - Match List I with List II
LIST I
LIST II
A Accommodating items I International purchases B Capital Account II Central Bank C Balance of trade III Above the line items D Dirty Floating IV Visible items
Choose the correct answer from the options given below: - Choose the correct example of Revenue Expenditure.
View More Questions
Top CUET Foreign exchange market Questions
- In Pakistan most of the foreign exchange earning come from one among the following. Choose the correct option.
- Identify the set of correct Statements :
(A) Fixed Exchange rate is regulated by the Government
(B) Flexible Exchange rate is regulated by the market forces
(C) Dirty Floating is a hybrid of Fixed and Flexible Exchange rate system
(D) Flexible exchange rate system is also known as dirty floating
(E) Fixed exchange rate keeps on changing with the change in demand and supply of Foreign Exchange
Choose the correct answer from the options given below : - Which is not a part of progress of china?
- In a managed floating exchange rate system:
Top CUET Questions
Select the statements that are CORRECT regarding patterns of biodiversity.
(A) Species diversity increases as we move away from the equator towards the poles(B) The tropical Amazon rain forest in South America has the greatest biodiversity on earth.(C) There is more solar energy available in the temperate region than tropics.(D) Tropical environments are less seasonal relatively more constant and predictableWhich of the following hormone is not produced by placenta ?
- Individuals with karyotype of 44+XXY having overall masculine development with few feminine development like Gynaecomastia has _______ chromosomal disorder.
- Match List - I with List - II.Choose the correct answer from the options given below :
List - I
List - II
A Streptokinase I Blood-Cholestrol lowering agents B Cyclosporin II Clot Buster C Statins III Propionibacterium sharmanii D Swiss Cheese IV Immuno suppressive agent Which of the following option determines percolation and water holding capacity of soils ?
View More Questions