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Please answer this question Giving reasons, state whether the following statements are True/False (6) a. b. C. d. A fall in the price of I US Dollar from RS.70 to Rs.60 means depreciation of the Indian currency. ¯ Both depreciation and devaluation of domestic currency have the same meaning. Depreciation of encourages exports. Appreciation of domestic currency discourages imports. —

a) FALSE AS IT MEANS APPRECIATION OF INDIAN CURRENCY.
b) FALSE AS THEY ARE NOT EXACTLY SAME.
c) TRUE AS DEPRECIATION OF DOMESTIC CURRENCY ENCOURAGES EXPORTS.
d) TRUE AS APPRECIATION OF DOMESTIC CURRENCY ENCOURAGES IMPORTS.

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@sakshiagarwal for the (D) part of the question it says that appreciation of domestic currency discourages imports. This statement is false because appreciation of domestic currency means the value of domestic currency has become expensive against the value of the foreign currency. So now indians have to pay less money for buying foreign goods. Thus it is promoting imports.
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a) FALSE AS IT MEANS APPRECIATION OF INDIAN CURRENCY. b) FALSE AS THEY ARE NOT EXACTLY SAME. c) TRUE AS DEPRECIATION OF DOMESTIC CURRENCY ENCOURAGES EXPORTS. d) FALSE AS APPRECIATION OF DOMESTIC CURRENCY ENCOURAGES IMPORTS.
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