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Which of the following factors are attributed to the weakening of Indian rupee? A. Rupee payment for…

Depreciation (weakening) of the Indian Rupee in the foreign exchange market is driven by a rising cost of imports such as crude oil and commodities (B) and a widening trade…

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Which of the following factors are attributed to the weakening of Indian rupee?

A. Rupee payment for international trade

B. Rising cost of imports

C. Widening trade deficit

D. Opening of Rupee vostro accounts E Rupee UPI payments for overseas transactions Choose the most appropriate answer from the options given below:

Select one answer
Answer and explanation

Correct answer D

Depreciation (weakening) of the Indian Rupee in the foreign exchange market is driven by a rising cost of imports such as crude oil and commodities (B) and a widening trade deficit (C), alongside trade settlement adjustments through Rupee vostro accounts (D).

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  • UGC NET Commerce

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