1.

Which of the following is a consequence of rupee depreciation?1. Decrease in the cost of imports2. Foreign trips will become cheaper3. Exports will become less competitive4. Increase in remittances from abroad

Answer» Correct Answer - Option 4 : Increase in remittances from abroad
The correct answer is Option 4.
  • Rupee depreciation badly affects importers or those who wish to visit foreign countries for holidays as they need more local currency to get the same service or product.
  • When rupee depreciates exporters from India are benefited. (Eg: Software companies, seafood exporters etc.)
  • Depreciation of rupee benefits the overseas Indians as those who are working abroad will gain more on remitting money to their homeland. Hence, Option 4 is the correct answer.


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