Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Match List-I with List-II

List-I

List-II

(A) Devaluation

(I) Price of foreign currency in terms of domestic currency increase

(B) Revaluation

(II) Price of domestic currency in terms of foreign currency increases

(C) Depreciation

(III) Increase the exchange rate by the action of the Government

(D) Appreciation

(IV) Decreases the exchange rate by the action of the Government

Choose the correct answer from the options given below:

Options:

(A)-(I), (B)-(II), (C)-(III), (D)-(IV)

(A)-(I), (B)-(III), (C)-(II), (D)-(IV)

(A)-(I), (B)-(II), (C)-(IV), (D)-(III)

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Correct Answer:

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

Explanation:

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)

List-I

List-II

(A) Devaluation

(III) Increase the exchange rate by the action of the Government

(B) Revaluation

(IV) Decreases the exchange rate by the action of the Government

(C) Depreciation

(I) Price of foreign currency in terms of domestic currency increase

(D) Appreciation

(II) Price of domestic currency in terms of foreign currency increases