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A change in the exchange rate of the Indian rupee and the British Pound from Rs.95 for a pound to Rs.100 for a pound will mean:

Solution

Correct Option: 1

A rise from Rs.95 to Rs.100 per pound means the rupee has depreciated. Indian goods become cheaper in terms of pounds for British buyers, so Indian exports to Britain become more competitive and will increase.

2023: 20 June Shift 1

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