If the exchange rate changes from 57 Indian rupee per dollar to 53 Indian rupee per dollar, what has happened to the dollar?
A) It has appreciated and so buys more Indian goods.
B) It has appreciated and so buys fewer Indian goods.
C) It has depreciated and so buys more Indian goods.
D) It has depreciated and so buys fewer Indian goods.

Question

Quizplus · Accepted Answer

When the exchange rate changes from 57 Indian rupee per dollar to 53 Indian rupee per dollar, it means that the dollar has depreciated as it now buys fewer Indian goods.

If the Exchange Rate Changes from 57 Indian Rupee Per