Question

Let foreign exchange rate between Indian Rupee and US dollar is 1$ = ₹40 and it changes to 1$ = ₹50. Which of the following is the reason of depreciation of Indian currency?
options are-
. Increase in demand of US dollar and decrease in supply of US dollar
B. Increase in both demand and supply of US dollar
C. Increase in supply of US dollar and decrease in demand of US dollar
D. Decrease in both demand and supply of US dollar​

Answer 1

Answer:

optionB Increase in both demand and supply of US dollar

is the correct answer