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Read the news report given below and answer the question that follow with respect to the same:
The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.
At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.
The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.
On Friday, the rupee had closed at ₹ 72.96 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.
On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.
Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.
Q. How is the exchange rate determined in India?
- a)By the government.
- b)By the demand and supply of Foreign Currency
- c)Both (A) and (B)
- d)Neither (A) nor (B)
Correct answer is option 'C'. Can you explain this answer?
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Read the news report given below and answer the question that follow ...
India practices a managed floating exchange rate system in which the Central Bank has a major role to play.
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Read the news report given below and answer the question that follow ...
Exchange Rate Determination in India:
Exchange rates in India are determined by a combination of factors, primarily by the demand and supply of foreign currency in the market. Let's break down the process:
1. Demand and Supply:
- The exchange rate of the Indian rupee against foreign currencies, particularly the US dollar, is influenced by the demand and supply dynamics in the foreign exchange market.
- If the demand for a particular currency (e.g., US dollar) is high, its value will appreciate relative to the Indian rupee. Conversely, if the demand decreases, the currency value will depreciate.
2. Market Forces:
- The exchange rate is also influenced by market forces such as economic indicators, geopolitical events, inflation rates, and interest rates.
- These factors impact the demand for a currency, leading to fluctuations in exchange rates.
3. Government Intervention:
- While exchange rates are primarily determined by market forces, the government and central bank (Reserve Bank of India) may intervene to stabilize the currency.
- The RBI may buy or sell foreign currency reserves to influence the exchange rate and maintain stability in the forex market.
4. Balance of Payments:
- The exchange rate is also affected by the country's balance of payments, which includes trade balance, capital flows, and foreign investments.
- A surplus in the balance of payments can strengthen the currency, while a deficit may lead to depreciation.
5. Global Factors:
- Global economic conditions, trade relations, and geopolitical events can impact exchange rates.
- Factors such as global oil prices, US dollar strength, and international market trends play a significant role in determining the value of the Indian rupee.
In conclusion, the exchange rate in India is determined by a complex interplay of market forces, government intervention, balance of payments, and global factors. Understanding these factors is crucial for analyzing currency movements and making informed decisions in the foreign exchange market.
Exchange rates in India are determined by a combination of factors, primarily by the demand and supply of foreign currency in the market. Let's break down the process:
1. Demand and Supply:
- The exchange rate of the Indian rupee against foreign currencies, particularly the US dollar, is influenced by the demand and supply dynamics in the foreign exchange market.
- If the demand for a particular currency (e.g., US dollar) is high, its value will appreciate relative to the Indian rupee. Conversely, if the demand decreases, the currency value will depreciate.
2. Market Forces:
- The exchange rate is also influenced by market forces such as economic indicators, geopolitical events, inflation rates, and interest rates.
- These factors impact the demand for a currency, leading to fluctuations in exchange rates.
3. Government Intervention:
- While exchange rates are primarily determined by market forces, the government and central bank (Reserve Bank of India) may intervene to stabilize the currency.
- The RBI may buy or sell foreign currency reserves to influence the exchange rate and maintain stability in the forex market.
4. Balance of Payments:
- The exchange rate is also affected by the country's balance of payments, which includes trade balance, capital flows, and foreign investments.
- A surplus in the balance of payments can strengthen the currency, while a deficit may lead to depreciation.
5. Global Factors:
- Global economic conditions, trade relations, and geopolitical events can impact exchange rates.
- Factors such as global oil prices, US dollar strength, and international market trends play a significant role in determining the value of the Indian rupee.
In conclusion, the exchange rate in India is determined by a complex interplay of market forces, government intervention, balance of payments, and global factors. Understanding these factors is crucial for analyzing currency movements and making informed decisions in the foreign exchange market.
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Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer?
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Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer?.
Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer?.
Solutions for Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Here you can find the meaning of Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Read the news report given below and answer the question that follow with respect to the same:The rupee depreciated by 6 paise to close at 73.02 (provisional) against the US dollar on Monday, tracking a rebound in the American currency overseas.At the interbank Forex market, the domestic unit opened at ₹ 72.89 against the US dollar and witnessed an intra-day high of ₹ 72.84 and a low of ₹ 73.15.The local unit finally settled at ₹ 73.02, registering a fall of 6 paise over its previous close, even as the domestic equity market settled with significant gains on Budget day.On Friday, the rupee had closed at ₹ 72.96 against the American currency.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to ₹ 90.78.On the domestic equity market front, the BSE Sensex ended 2,314.84 points or 5 per cent higher at 48,600.61, while the broader NSE Nifty advanced 646.60 points or 4.74 percent to 14,281.20.Foreign institutional investors were net sellers in the capital market as they offloaded shares worth ₹5,930.66 crore on Friday, according to exchange data.Brent Crude Futures, the global oil benchmark, advanced 0.84 per cent to USD 55.50 per barrel.Q. How is the exchange rate determined in India?a)By the government.b)By the demand and supply of Foreign Currencyc)Both (A) and (B)d)Neither (A) nor (B)Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Commerce tests.
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