Assertion (A) : The rate of growth of India’s exports has shown an appreciable increase after 1991.

 Reason (R) : The Govt. of India has resorted 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 of currency is conscious decision taken by Central bank of country to lower the external value of domestic currency. As a result of this Indian goods become cheaper for Foreigners. Import would become costlier.

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