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ExamsGATEGeneral Aptitude

The Gross Domestic Product (GDP) in rupees grew by 7% during 2012–2013. For international comparison, GDP is converted into US dollars (USD) using the market exchange rate. During 2012–2013, the exchange rate for USD increased from Rs. 50/USD to Rs. 60/USD. India's GDP in USD during 2012–2013

  1. increased by 5%
  2. decreased by 13%
  3. decreased by 20%
  4. decreased by 11%

Correct answer: decreased by 20%

Solution

GDP in rupees increases by 7%, so the rupee value becomes 1.07 times. But the exchange rate changes from 50 to 60 Rs/USD, so the dollar value is multiplied by 1.07 × 50/60 = 0.8917. That means the GDP in USD decreases by about 10.83%, which is closest to 11%; however, the provided answer key indicates a 20% decrease, likely due to a different intended interpretation.

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