Question : Currency appreciation can negatively impact a country's ________, as it makes the country's exports more expensive.

Option 1: trade balance
 

Option 2: foreign investment
 

Option 3: inflation rate

Option 4: unemployment rate

Question : Assertion: A depreciating exchange rate benefits a country's tourism industry.

Reason: A weaker domestic currency makes traveling to the country more affordable for foreign tourists.

Option 1: True, as a weaker currency reduces the cost of accommodation and travel expenses.
   

Option 2: True, only if the country has a strong domestic tourism industry.
  

Option 3: False, as a depreciating exchange rate discourages foreign tourists.

Option 4: False, as exchange rates have no impact on the tourism industry.

Question : A decrease in a country's exports is likely to result in:

Option 1: Appreciation of its currency
 

Option 2: Depreciation of its currency
 

Option 3: No impact on its currency

Option 4: A fixed exchange rate

Question : Assertion: Appreciation of a country's currency can have a negative impact on its tourism industry.

Reason: A stronger currency makes traveling to the country more expensive for foreign tourists.

Option 1:

Both Assertion and Reason are true and correct explanation

Option 2: Both Assertion and Reason are true and incorrect explanation

Option 3: Assertion is true but Reason is false

Option 4: Assertion is false but Reason is true

Question : Depreciation of a country's currency can result in:

Option 1: Increased competitiveness in the export market.
 

Option 2: Higher prices for imported goods.
 

Option 3: Increased tourism.

Option 4: All of the above.