Consider the following statements:

(a) Indian Rupee depreciated to breach the Rupees 80 per dollar mark for the first time in July 2022.

(b) The value of Rupee to one dollar at the time of independence was 20
Choose the correct answer from the codes below:​​

Correct option is A

The correct answer is (a) (a) is correct but (b) is wrong
Explanation:
● Statement (a) is Correct: In July 2022, the Indian Rupee depreciated and crossed the psychological mark of Rs 80 per US Dollar for the first time.
● Statement (b) is Wrong: At the time of independence (1947), India's currency was pegged to the British Pound Sterling (due to colonial rule). The exchange rate was roughly at par (1 Rupee ≈ 1 USD) or very close to it, certainly not 20. The rupee was devalued significantly later (e.g., in 1966 and 1991).
Information Booster:
● Currency depreciation makes exports cheaper and imports expensive.
Additional Knowledge:
● The value of currency is determined by market forces of demand and supply in a floating exchange rate system.