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WBCS Preliminary Examination 2020 — General Studies · Question 150 of 200

Q150
Indian EconomyExternal Sector & International Organisations
When the Indian Rupee gets depreciated vis-à-vis the U.S. dollar, it usually makes
  1. a.Exports Cheaper and Imports Costlier
  2. b.Imports Cheaper and Exports Costlier
  3. c.both Exports and Imports Costlier
  4. d.no effect on Exports and Imports

Answer: (A) Exports Cheaper and Imports Costlier

A weaker rupee makes Indian goods cheaper for foreign buyers (boosting exports) while making imported goods costlier in rupee terms.