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    Question

    An Indian importer buying goods from the USA will be

    concerned if the Indian Rupee:
    A Appreciates against the US Dollar Correct Answer Incorrect Answer
    B Depreciates against the US Dollar Correct Answer Incorrect Answer
    C Remains stable Correct Answer Incorrect Answer
    D Is devalued by the RBI Correct Answer Incorrect Answer

    Solution

    If the Indian Rupee depreciates against the US Dollar, it means the importer needs to pay more rupees to buy the same amount of dollars to settle the invoice, increasing the cost of imports.

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