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Question
Which of the following statements is true?
Options
Depreciation of the foreign currency leads to the rice in exports.
Devaluation of the domestic currency leads to a rise in imports.
Appreciation of domestic currency leads to rise in exports.
Appreciation of foreign currency leads to fall in imports.
MCQ
Solution
Depreciation of the foreign currency leads to rice in exports.
Explanation:
For international buyers, a depreciation of the home currency means a decrease in the price of domestic goods.
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Foreign Trade
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