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What is Meant by Depreciation of Domestic Currency? - Economics

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प्रश्न

What is meant by the depreciation of domestic currency?

उत्तर

Depreciation of domestic currency refers to decrease in the value of a domestic currency in terms of foreign currency. For example, if the price of $1 increases from Rs 55 to Rs 59. It means to fall in the price of the domestic currency.

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2016-2017 (March) All India Set 1

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संबंधित प्रश्न

Give the meaning of balance of payments.


Distinguish between current account and capital account


Distinguish between an autonomous transaction and accommodating transactions of the balance of payments account.


Will the following be included in the domestic product of India? Give reasons for your answer.

Profit earned by a branch of State Bank of India in Japan


Will the following be included in the national income of India? Give reasons for your answer

Financial assistance to flood victims


Name the broad categories of transactions recorded in the 'current account' of the Balance of Payments Accounts


Give the meanings of 'autonomous' transactions and 'accommodating' transactions in the Balance of Payments Accounts.


State the components of capital account of balance of payments. 


Balance of Payments of an economy records ____________ for a fiscal year.


Where will sale of machinery to abroad be recorded in the balance of payment accounts?


______ refers to the currency notes and coins being issued by the monetary authorities of India (RBI and government of India) as a legal medium of payment. 


Accommodating items are also called ______


An Indian company located in India invests in a company located abroad. This transaction is entered in India's Balance of Payments Account on:


The following information is given for an imaginary country:

Current Account Amount (in ₹’000
Crore)
Visible Exports 100
Visible Imports 150
Invisible Exports 70
Invisible Imports 30
Net current transfer balance 15

Balance on current account will be ____________ of ₹ ______ thousand Crore.


Categorise the following item into Current Account or Capital Account of Balance of Payment of India.

Acquisition of land in India by an American firm


Briefly explain the effect of the following on the Balance of Payment of a country.

Inflationary pressure in the economy


If autonomous payments are higher than autonomous receipts, how can BOP be brought into balance?


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