5 Views

Question : The major aim of devaluation is to:

Option 1: encourage imports

Option 2: encourage exports

Option 3: encourage both exports and imports

Option 4: discourage both exports and imports 


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: encourage exports


Solution : The correct option is to encourage exports .

Devaluation primarily serves to promote exports. A nation can lower the cost of its currency, increase exports and increase its competitiveness in the international market by devaluing its currency. A decision to devalue a currency causes it to lose value. Short-term effects include higher growth, export demand growth and inflation.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books