Multiple Choice
Scenario: Suppose India borrows $10,000 from the United States at the beginning of 2016. The flexible exchange rate is 50 Indian rupees per dollar.
-Refer to the scenario above.If India pegs the exchange rate at 70 rupees per dollar,it will require ________ rupees to repay the loan in dollars.
A) 70
B) 7,000
C) 70,000
D) 700,000
Correct Answer:
Verified
Correct Answer:
Verified
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