News Clipping: 

Exporters are concerned about the adverse impact of the appreciation 

The rupee has touched Rs 45.34 against the dollar in Jan '10, a record level touched during the past 15 months. Rupee had touched close to a low of 52 to a dollar in March '09. 

Rupee appreciation is alarming for many as it comes at a time when exports are doing well after weathering the impact of the recession. Exporters are lobbying for arresting the appreciation as they fear losing the market share to some other country. 

I. How does the value of rupee get determined in the short period? (Marks 5)

II. What must have been the reason of appreciating rupee? (Marks 3)

III. How can RBI arrest the rupee appreciation? (Marks 5)

IV. Who will be happy with appreciating rupee? Classify following entities into Happy and Not Happy as a result of rupee appreciation: (Marks 7)

1. Foreign tourists coming to India

2. Indian tourists travelling abroad

3. Indian Importers, Indian Exporters

4. Foreign investors investing in India

5. Indian investors investing abroad

6. NRI's repatriating funds to India

7. MNCs repatriating profits abroad