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Question 106 Logical Reasoning 2023 Medium MCQ +1.00 marks · -0.25 negative

The depreciation of an economy’s currency is not a matter of concern in itself. The decline in value against major currencies has to be viewed within a set of macroeconomic factors. The recent depreciation of the Indian rupee is a case in point. The rupee has been depreciating…

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Which of the following is the author most likely to agree with?

A. It is a major cause for concern if an economy’s currency is depreciating. B. Currency depreciation is not a reason for worry in itself, but if macroeconomic factors are not good, there may be a cause for concern. C. The fact that the Indian rupee is witnessing a decline in value against major currencies is very worrisome. D. A central bank must always do everything in its power to stem the slightest depreciation of an economy’s currency.

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