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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 will the devaluation of the Indian Rupee affect imports?
- a)Imports will fall.
- b)Imports will rise.
- c)Imports will have no effect.
- d)None of the above
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Read the news report given below and answer the question that follow ...
This decline in the value of Rupee has an impact on the Indian Economy. When the rupee depreciates, the imports become more expensive. However, currency depreciation gives a boost to the exports of the country because Indian commodities become cheaper for the foreigners.
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Read the news report given below and answer the question that follow ...
Impact of the Indian Rupee Devaluation on Imports
Importing goods becomes more expensive when the value of the Indian Rupee depreciates against the US dollar. This is because the cost of purchasing goods from foreign countries increases relative to the local currency. Let's delve into the details of how this devaluation affects imports:
1. Cost of Imports:
- When the Rupee depreciates, the cost of importing goods rises as more Rupees are required to buy the same quantity of goods in foreign currency.
- This increase in cost can lead to higher prices for imported products in the domestic market, impacting consumers and businesses.
2. Inflation:
- Higher import costs can contribute to inflation as businesses may pass on the increased costs to consumers.
- This can have a cascading effect on the economy, affecting purchasing power and overall economic stability.
3. Trade Deficit:
- A devalued Rupee can widen the trade deficit as imports become costlier while the value of exports remains the same.
- This imbalance in trade can put pressure on the country's foreign exchange reserves and current account balance.
4. Impact on Industries:
- Industries that heavily rely on imports for raw materials or components may face challenges due to increased costs.
- Sectors like electronics, automobiles, and oil, which are import-dependent, could experience a negative impact on their margins.
5. Government Policies:
- The government may need to reassess trade policies, tariffs, and currency management strategies to mitigate the impact of Rupee devaluation on imports.
- Measures such as promoting domestic production, negotiating trade deals, or currency intervention may be considered.
In conclusion, the devaluation of the Indian Rupee can have significant implications for imports, affecting costs, inflation, trade deficits, industries, and necessitating appropriate policy responses to manage its impact effectively.
Importing goods becomes more expensive when the value of the Indian Rupee depreciates against the US dollar. This is because the cost of purchasing goods from foreign countries increases relative to the local currency. Let's delve into the details of how this devaluation affects imports:
1. Cost of Imports:
- When the Rupee depreciates, the cost of importing goods rises as more Rupees are required to buy the same quantity of goods in foreign currency.
- This increase in cost can lead to higher prices for imported products in the domestic market, impacting consumers and businesses.
2. Inflation:
- Higher import costs can contribute to inflation as businesses may pass on the increased costs to consumers.
- This can have a cascading effect on the economy, affecting purchasing power and overall economic stability.
3. Trade Deficit:
- A devalued Rupee can widen the trade deficit as imports become costlier while the value of exports remains the same.
- This imbalance in trade can put pressure on the country's foreign exchange reserves and current account balance.
4. Impact on Industries:
- Industries that heavily rely on imports for raw materials or components may face challenges due to increased costs.
- Sectors like electronics, automobiles, and oil, which are import-dependent, could experience a negative impact on their margins.
5. Government Policies:
- The government may need to reassess trade policies, tariffs, and currency management strategies to mitigate the impact of Rupee devaluation on imports.
- Measures such as promoting domestic production, negotiating trade deals, or currency intervention may be considered.
In conclusion, the devaluation of the Indian Rupee can have significant implications for imports, affecting costs, inflation, trade deficits, industries, and necessitating appropriate policy responses to manage its impact effectively.
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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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer?
Question Description
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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. 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 will the devaluation of the Indian Rupee affect imports?a)Imports will fall.b)Imports will rise.c)Imports will have no effect.d)None of the aboveCorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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