Question : Assertion: Depreciation of a country's currency can help boost its export-oriented industries.
Reason: A weaker currency makes a country's exports more affordable and competitive in the global market.
Option 1:
Both Assertion and Reason are true and correct explanation
Option 2: Both Assertion and Reason are true and incorrect explanation
Option 3: Assertion is true but Reason is false
Option 4: Assertion is false but Reason is true
Correct Answer:
Both Assertion and Reason are true and correct explanation
Solution : The correct answer is (a) Both Assertion and Reason are true and correct explanation.
Depreciation of a country's currency can indeed help boost its export-oriented industries. The Reason provided correctly explains that a weaker currency makes a country's exports more affordable and competitive in the global market. When a country's currency depreciates (decreases in value) relative to other currencies, its exports become relatively cheaper for foreign buyers. This can lead to an increase in export demand, as foreign buyers find the country's goods and services more affordable compared to those of other countries. The competitiveness of the country's exports improves, which can benefit its export-oriented industries.
Therefore, both the Assertion and Reason are true, and the Reason provides a correct explanation for why depreciation of a country's currency can help boost its export-oriented industries.
