The GATE Grind

GATE 2014 EC (EC3) – Question 2

General Aptitude · Verbal Aptitude: Grammar and Vocabulary · 1 mark · Multiple choice

One US dollar costs ₹65 today compared with ₹60 last year. The Indian rupee has ______.

  1. depressed
  2. depreciated
  3. appreciated
  4. stabilized

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Correct answer: (B) depreciated

Explanation

The price of one dollar rises from60to65rupees, so a rupee buys fewer dollars than before. This is **depreciation,B**, of the rupee. Appreciation would mean the opposite change. The exchange rates are hypothetical or historical data in the question, not current quotations.