Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy on the Eve of Independence

Question:

Which of the following is revaluation of currency in fixed exchange rate system

Options:

The price of domestic currency is pegged with two or more foreign currencies

When the government decreased the exchange rate

When the government increases the exchange rate

The price of domestic currency in terms of foreign currency increases.

Correct Answer:

When the government decreased the exchange rate

Explanation:

The correct answer is Option (2) → When the government decreased the exchange rate