ECONOMICS
BALANCE OF PAYMENTS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Depreciated
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Appreciated
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Devalued
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None
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Detailed explanation-1: -There would be no foreign Investment if Rupee equals dollar. The primary reason for a foreign investment in India is the cheapest labour cost. Foreign companies will not be investing in India when the cost of labour is higher compared to other countries. 3.
Detailed explanation-2: -Effect on inflation The Dollar index also impacts the inflationary trend in India. An increase in the Dollar index makes the dollar strong and depreciates the value of the INR. A weakened rupee makes imports costlier and impacts India Inc.’s profitability due to increased production costs.
Detailed explanation-3: -US Dollar to Indian Rupee Exchange Rate is at a current level of 81.98, down from 82.41 the previous market day and up from 75.94 one year ago. This is a change of-0.52% from the previous market day and 7.95% from one year ago.