Cima C04 Exam Question No 8

Question No 8:

All of the following are benefits for a business from depreciation (reduction) in the rate of exchange for the country’s currency EXCEPT which ONE?

A. The business could charge lower prices for its exports.
B. Imported raw materials used by the business would be cheaper.
C. The business could raise profit margins on exports without losing sales.
D. In its home market, the business would face reduced competition from imports.

Answer: B