How are you faring?

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how to answer the question How are you fairing?

how to answer the question  How are you fairing

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First off it's "faring" not "fairing". It just means how are you doing or getting along, so an answer such as "well" or "good" would probably be appropriate.
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As Rev says, it's "How are you faring?".

Reply something like "Fine, thank you" ... and then back away politely, because the speaker is weird to use such an archaic expression.
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