Practice question

MCQ

Question

Assertion (A): Demand for foreign exchange and exchange rate moves in the same direction.
Reason (R): When exchange rate rises domestic goods becomes cheaper in international market.
Alternatives

Options

Choose one · Correct answer highlighted

Assertion (A) is true and Reason (R) is a correct reason of Assertion (A). Assertion (A) is true and Reason (R) is not a correct reason of Assertion (A) Assertion (A) is false, but Reason (R) is true Correct Both are false

Explanation

Assertion (A) is false, but Reason BOP correct; tariff barrier makes imports costlier restricts trade.

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Assertion (A): Demand for foreign exchange and exchange rate moves in the same direction. Reason (R): When exchange rate rises domestic goods becomes cheaper in international market. Alternatives

Options

Explanation

Comments

Related blogs

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Exploring Mixtures and their Separation Notes - Types of Mixtures, Separation Methods and Solutions

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Assertion (A): Demand for foreign exchange and exchange rate moves in the same direction.
Reason (R): When exchange rate rises domestic goods becomes cheaper in international market.
Alternatives