Question

1-If $1 =rupees 60 and now rupee $1= to rs.50 under fixed exchange our currency has devalued and acc to flexible our currency is appreciated.Is it right?
2- payment of interest on loan taken by General government is included in national income or not

Answer 1

Dear student,
In the given scenario the currency is said to be revalued. That is, the value of domestic currency in terms of foreign currency has increased. Earlier Rs 60 worth of goods could be purchased with $1, now with the same amount only Rs 50 worth of goods can be purchased.
In a flexible exchange rate regime this situation is known as currency appreciation.

Ans 2) No, the interest on loan taken by the government is not included in national income as the loan is taken for consumption purposes.