If Rs 150 are required to buy 2 instead of Rs100 earlier then ........

If Rs 150 are required to buy $ 2, instead of Rs100 earlier, then:

Domestic currency has depreciated;

Domestic currency has appreciated;

Rupee value of import bill will increase;

Both (a) and (c) (d)

- Option 1: Domestic currency has depreciated

- Initially, Rs 100 bought $2. Now, Rs 150 are needed.

- This indicates that the domestic currency has lost value relative to the dollar.

- Correct interpretation.

- Option 2: Domestic currency has appreciated

- This would mean the domestic currency has gained value, which isn't the case.

- Incorrect interpretation.

- Option 3: Rupee value of import bill will increase

- If domestic currency depreciates, more rupees are needed for the same amount of dollars.

- This increases the cost of imports in rupees.

- Correct interpretation.

- Option 4: Both (a) and (c)

- This option correctly identifies both the depreciation and increased import bill.

- Correct answer.

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