When Indian Rupee gets depreciated vis-a-vis U.S. Dollar, it usually makes our
- AExports Cheaper and Imports Costlier
- BImports Cheaper and Exports Costlier
- CBoth Exports and Imports Costlier
- DNo effect on Exports and Imports
Solution & Step-by-step Explanation
Currency depreciation means a decrease in the value of the domestic currency relative to foreign currencies. When the Indian Rupee depreciates against the U.S. Dollar:
* Foreign buyers need fewer dollars to purchase the same amount of Indian goods, making our exports cheaper and more competitive globally.
* Indian buyers need more rupees to purchase the same amount of foreign goods, making our imports costlier.
* Foreign buyers need fewer dollars to purchase the same amount of Indian goods, making our exports cheaper and more competitive globally.
* Indian buyers need more rupees to purchase the same amount of foreign goods, making our imports costlier.