CUET Economics - Identify the most unlikely reason or appreciation of the US dollar. | PYQs + Solutions

CUET Economics

Macro

Medium

The Federal Reserve raising the interest rate against inflation.

The rising demand for the US dollar with the investors withdrawing their investments.

High rates of economic growth experienced by the South East Asian Countries during late 1980's and early 1990's.

Fall in prices of assets of the Southeast Asian Countries.

✅ Correct Option: 3

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"GST has improved India's ranking in terms of ease of doing business. The introduction of GST has attracted foreign investors in large numbers."

What will be the sequential impact of the above on the exchange rate of the rupee in the international money market?

(A) The supply curve of foreign exchange shifts to the right.

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(D) An increase in foreign investment increases the supply of foreign exchange.

Choose the correct answer from the options given below:

CUET Economics PYQs