If real exchange rate is high, it might lead to :

CA Foundation · Business Economics · MTP · September 2026
If real exchange rate is high, it might lead to :
(A) A. current account deficit
(B) B. fiscal deficit
(C) C. current account surplus
(D) D. increase in foreign exchange reserves

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. current account surplus

Topics: International Trade

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