Question : The value of US dollar $1 has come down from INR 85 to INR 84. It means that:
Option 1: Indian rupee has appreciated
Option 2: US dollar has depreciated
Option 3: Both (a) and (b)
Option 4: None
Answer (1)
24th Jan, 2024
Correct Answer: Both (a) and (b)
Solution : The correct answer is (c) Both (a) and (b).
When the value of the US dollar decreases in terms of Indian rupees, it means that you now need fewer Indian rupees to buy one US dollar. This indicates that the Indian rupee has appreciated against the US dollar. Simultaneously, it also means that the US dollar has depreciated against the Indian rupee. Therefore, both statements (a) and (b) are correct in this case.
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