Currencies depreciate and appreciate all the time. Who gains and who loses when the Russian rouble depreciates?
A) Europeans holding Russian roubles gain, European tourists to Russia lose.
B) European exporters to Russia gain, Europeans holding Russian roubles lose.
C) Russian exporters gain, Russian importers lose.
D) Russian importers gain, Russian exporters lose.

Question

Quizplus · Accepted Answer

When the Russian rouble depreciates, Russian exporters gain because their goods become cheaper for foreign buyers, increasing demand. Conversely, Russian importers lose because foreign goods become more expensive to purchase.

Currencies Depreciate and Appreciate All the Time