The exchange rate is the ruling official rate of exchange of dollars for other currencies . It determines the value of American goods in relation to foreign goods. If the the dollar is devalued in terms of other currencies , American exports ( which are

The exchange rate is the ruling official rate of exchange of dollars for other currencies . It determines the value of American goods in relation to foreign goods. If the the dollar is devalued in terms of other currencies , American exports ( which are Correct Answer By encouraging exports and discouraging imports, devaluation can improve the American balance of payments

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The exchange rate is the ruling official rate of exchange of Taka for other currencies. It determines the value of Bangladeshi goods in relation to foreign foods. If the Taka is devalued in terms other currencies Bangladeshi exports (which are paid for in Taka ) become cheaper to foreigners and Bangladeshi imports become more expensive to holders of Taka. What conclusion can be drawn form the information above?
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: The government will ‘very soon’ implement the second set of measures including curb on imports of non-essential items to shore up rupee to 68-70 level against the US dollar, Economic Affairs Secretary Subhash Chandra Garg said, terming the about 12 per cent slide in the currency as a temporary phenomenon. The government had earlier this month announced easing of overseas borrowing norms for manufacturing companies, removal of restrictions on foreign portfolio investors (FPI) investment in corporate bonds and tax benefits on Masala bonds to shore up rupee and check widening of current account deficit.  Courses of action: I. Now, the Centre has prepared a list of non-essential items whose imports can be curbed and also drawn up a separate list of goods whose exports can be boosted with a little policy intervention. II. A group headed by the Commerce Secretary has ‘more or less’ completed its task on finalizing the list. III. The rupee has been battered for over a month now amid sell-offs sweeping emerging markets following a rout in the currencies of Argentina and Turkey. 
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the suggested courses of action logically follow(s) for pursuing. Statement: The rupee may slump to a new low this year amid global policy uncertainties while domestic interest rates will remain elevated, raising borrowing costs, according to an ET poll of 20 market participants. Nearly three-fourths of the respondents believe the local unit could touch 69 to the dollar with some even pointing to 70 by December-end. The rupee is one of the worst-performing emerging market currencies this year, having lost about 6.7 per cent to the greenback to close at 68.13 on Monday. Courses of action: I. Indian corporates may borrow less ahead of elections with the likely benchmark rate at 8 per cent or more. Half the poll participants were of the opinion that the benchmark yield will either hover around that level or rise further. II. External factors coupled with domestic macro measures like weak current account deficit or fiscal deficit are likely to impact the rupee. The US Fed seems to be on course to raise rates.  III. Upcoming elections trigger a bit of policy uncertainty. A cocktail of factors including dollar strengthening, foreign fund outflows, general emerging market weakness and oil would continue to weigh on the rupee.