Question
Suppose that the exchange rate of the Indian rupee
appreciates by 10 per cent relative to the currencies of India’s trading partners. Over the same period, inflation in India is 8 percent compared to 3 percent inflation in the trading partners. What is the change in India’s real exchange rate? This question obtained (1) Marks:ÂSolution
India’s real exchange rate will appreciate by 15%. Excess of inflation in India as compared to other trading partners = (8−3) =5%. Appreciation in exchange rate of Indian rupee relative to the currencies of trading partners =10% ∴ Appreciation in India’s real exchange rate =10+5=15%.
Choose the correct option
Statement I: Percolation ponds/tanks are constructed for effective recharge of groundwater
Statement II: Emergen...
Wetlands are vital ecosystems which sustain biological diversity. The government will promote their unique conservation values through………………...
How many employment opportunities have been created by Indian startups?
A market over which government bodies or industry or labour groups, exert a level of control is known as ______
The Fungus which causes soft rot and leakage of juices from fruits such as tomato, sweet potato etc. is
The National Innovations in Climate Resilient Agriculture (NICRA) is a flagship project aimed at developing climate-resilient technologies for agricultu...
The branch of ornamental horticulture concerned with growing and marketing flowers and foliage plants as well as with flower arrangement is called
Production of one (main product) without the other (by-product) is not possible in case of:
Indian agriculture has been the source of supply of raw material to leading industries. Which of the following industry is directly depend on agricultu...
Heat which cause increase or decrease in temperature without changing state is known as
