Identify the CORRECT statement(s) in the context of an open economy. (A) When domestic currency appreciates, foreign goods become more expensive to domestic buyers. (B) When domestic currency appreciates, domestic goods become more expensive to foreign buyers. (C) When domestic currency depreciates, foreign goods become less expensive to domestic buyers. (D) When domestic currency depreciates, domestic goods become more expensive to foreign buyers.

IIT JAM 2026 Question 34: Balance of payments and exchange rates

Identify the CORRECT statement(s) in the context of an open economy.

Select all that apply.

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Balance of payments and exchange rates has come up 120 times in 7 exams since 2007.

This question is on Exchange rate concepts, part of Balance of payments and exchange rates in International Economics.

Nominal, real and effective exchange rates and how they are quoted and converted.

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