Description
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What is meant by currency depreciation?
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In case of currency depreciation, value of currency depreciates. Currency is domestic currency or foreign currency. Comment with the help of an example.
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What is meant by foreign exchange rate?
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How does currency depreciation effect the cost of imported goods? Elaborate with the help of an example.
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How does currency depreciation effect a country’s exports? Discuss with the help of a real life example.
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What is meant by trade surplus?
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What are the possible reasons behind depreciation of a country’s currency?
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How lower interest rates result in the depreciation of domestic currency?
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If there are large capital outflows in a country, how does it effect the domestic currency?
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Currency depreciation in a country results into increased inbound tourism. Discuss.
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How currency depreciation impacts outbound tourism?
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What is the impact of currency depreciation on foreign debt?
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Explain with the help of an example how currency depreciation is a negative one for borrowers of foreign debt?
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Whether Central Bank intervenes in Currency depreciation?
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Why Central Bank intervenes in case of currency depreciation?
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How does Central Bank intervene in case of currency depreciation?
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What are the challenges if the Central Bank intervenes in case of currency depreciation?
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