Assertion (A) : Devaluation of a currency may promote export. 

Reason (R) : Price of the country’s products in the international market may fall due to devaluation. 

(a) Both A and R are true and R is the correct explanation of A 

(b) Both A and R are true but R is not a correct explanation of A 

(c) A is true but R is false 

(d) A is false but R is true

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1 Answers

(a) Devaluation is a conscious decision taken by Central Bank of the country to lower the external value of domestic currency. After devaluation of the rupee Indian goods would become cheaper for foreigners.

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