Economics · Economy
Consider the following statements regarding the Indian rupee and bond market: Statement I: A sharp fall in the rupee reduces the demand for U.S. dollars by boosting exports and thereby attracting dollar inflows. Statement II: A decline in U.S. interest rates generally lowers Indian bond yields due to improved capital inflows. Which one of the following is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Statement I is incorrect, but Statement II is correct.✓
- 2Statement I is correct, but Statement II is incorrect.
- 3Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
- 4Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
Correct answer
Statement I is incorrect, but Statement II is correct.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Economy MCQs →Want more practice questions on Economy?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Economy