New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    When exchange rate in terms of domestic currency

    rises
    A Exports become cheaper Correct Answer Incorrect Answer
    B Exports become costlier Correct Answer Incorrect Answer
    C Imports become cheaper Correct Answer Incorrect Answer
    D No effect on imports Correct Answer Incorrect Answer

    Solution

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

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