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Question : It means with same amount of dollar more goods can be purchased from foreign country. Which effect of appreciation is highlighted here?
 

Option 1: Increase in imports
 

Option 2: Decrease in exports  
 

Option 3: Decrease in the national income
 

Option 4: All of the above.
 


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 12th Jan, 2024

Correct Answer: Increase in imports
 


Solution : Appreciation of a domestic currency means a rise in the price of domestic currency in terms of foreign currency, where more amount of good can be purchase from foreign currency with same amount of money.
Hence Option A is correct.

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