Economics 2281 · O Level · Foreign exchange rates

Foreign exchange rates — practice question

During August 2013, the Indian rupee fell to a lower level against the US dollar than it had been in the previous month. What is the meaning of this?

  • AIndia’s balance of trade would worsen.
  • BIndian goods became cheaper in the US.
  • CInvestors would wish to buy Indian rupees.
  • DMore Indian students would study in the US.

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