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      Question

      When exchange rate in terms of domestic currency

      rises:-
      A Exports become cheaper Correct Answer Incorrect Answer
      B Imports become cheaper Correct Answer Incorrect Answer
      C Exports become costlier Correct Answer Incorrect Answer
      D No effect on imports Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      When exchange rate in terms of domestic currency rises exports become cheaper

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