Q. 19

In recent times t

Answer :

The Indian Rupee depreciated to an all-time low against the US dollar. ThisThis would have the following impact on India's import:

a. Depreciation of Indian rupee means a fall in the purchasing power of the Indian rupee in terms of the US dollar.

b. This would make foreign goods expensive in India.

c. This would lead to a fall in the demand of goods and services.


● No, I do not agree with this statement.

● A trade deficit occurs when the value of goods imported exceeds the value of goods exported.

● Trade deficit = Value of Imports > Value of exports

● A situation of trade surplus arises when the deficit on trade account is else than the surplus on account of goods.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses

Primary deficit eEconomics - Board Papers

Foreign exchange Economics - Board Papers

(a) Define “TradeEconomics - Board Papers