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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Answer (1)
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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