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Economics
6. Open Economy Macroeconomics
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Q8 of 15 Page 6

Distinguish between appreciation of currencies and depreciation of currencies



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6

Give reasons for a rise in demand for foreign currency when its price falls.

7

How can the Reserve Bank of India help in bringing down the foreign exchange rate which is very high?

9

Distinguish between the autonomous and accommodating transaction of the balance of payment account.

10

How is the foreign exchange rate determined? Explain with the help of a diagram.

Questions · 15
6. Open Economy Macroeconomics
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