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Question : Which of the following statement is correct?

  • Devaluation and depreciation of currency are one and the same thing
  • Demand for American goods will rise in India due to every session of Indian currency.

 

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.
 


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Team Careers360 22nd Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Statement 2 is true and statement 1 is false.


Solution : Devaluation is a part of fixed exchange rate where as depreciation is a part of flexible exchange rate.
Demand for American goods will rise in India due to every session of Indian currency.
Hence option D is correct .

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