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Which statement best explains Depreciation of rupee?

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Question ID #26436 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium

Which statement best explains Depreciation of rupee?

Correct Answer: D. Market-driven fall in the rupee's value relative to another currency
Depreciation of rupee: Market-driven fall in the rupee's value relative to another currency

Question: Which statement best explains Depreciation of rupee?

A. Transfer of ownership or control from public sector to private sector

B. GDP measured at current prices

C. Central-bank policy influencing money, liquidity and interest rates to achieve macroeconomic objectives

D. Market-driven fall in the rupee's value relative to another currency

Correct Answer: D. Market-driven fall in the rupee's value relative to another currencyDepreciation of rupee: Market-driven fall in the rupee's value relative to another currency

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Which statement best explains Depreciation of rupee? - MCQ Explanation

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Correct answer: D. Market-driven fall in the rupee's value relative to another currency