Question:
Th outcome of devaluation of currency is
Th outcome of devaluation of currency is
Updated On: Jan 30, 2025
- Increased export and foreign reserve deficiency
- Increased export and improvement in balance of payments
- Increased import and improvement in balance of payments
- Increased export and import
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The Correct Option is B
Solution and Explanation
The correct option is (B): Increased export and improvement in balance of payments
Explanation: The outcome of devaluation of currency is Increased export and improvement in balance of payments. Devaluation makes a country's exports cheaper and more competitive in international markets, leading to an increase in export volumes and potentially improving the balance of payments.
Explanation: The outcome of devaluation of currency is Increased export and improvement in balance of payments. Devaluation makes a country's exports cheaper and more competitive in international markets, leading to an increase in export volumes and potentially improving the balance of payments.
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