Devaluation & Revaluation

Q.

What is the name given to a managed float when the exchange rate rises?

Q. 'Devaluation and Depreciation of currency are one and the same thing'. Do you agree? How do they affect the exports of a country?

Q. Short Answer Type Questions:
Explain how 'Depreciation of currency' promotes exports of a country?

Q. Short Answer Type Questions:
Briefly discuss the concepts of currency appreciation and currency depreciation.

Q. Short Answer Type Questions:
Distinguish between devaluation and depreciation of domestic currency.

Q. Devaluation and depreciation of currency are one and the same thing.

1. True
2. False

Q. What is inflation? Discuss the effects of inflation on 'Producers'.

Q. Very Short Answer Type Questions
What is meant by depreciation of domestic currency?

Q. What is the effect of inflation on domestic investment?

Q. Very Short Answer Type Questions:
Mention the effects of exchange depreciation on exports.

Q. Devaluation of currency means ____________________.

1. Reduction in the value of domestic currency by the market forces
2. Reduction in the value of domestic currency by the government
3. Both (a) and (b)
4. Neither (a) nor (b)

Q. Currency devaluation done by the government leads to which of the following?

1. Fall in domestic prices
2. Increase in domestic prices
3. No impact on domestic prices
4. Irregular fluctuations in domestic prices

Q. In what way devaluation helps a country?

1. Improvement in Balance of Payment situation
2. Encourages exports
3. Discourages imports
4. All the three

Q. Devaluation of currency leads to?

1. Expansion of export trade
2. Contraction of import trade
3. All of the above
4. Expansion of import substituting

Q. Select the correct outcomes up depreciation in a country's currency-using the code given below:
1. Export of the country goes up as value of the export falls in the international market.
2. At times, countries use it as a means to promote their exports.
3.Promoting exports through depreciation in ones currency is like selling national assets at throwaway prices to the world.

1. Only 3
2. Only 1
3. 1, 2 and 3
4. 2 and 3

Q. Depreciation of currency and devaluation of currency are the same.

1. False
2. True

Q. Stagflation arises due to ________.

1. lower rate of growth
2. general price rise
3. both
4. none

Q. _______ is a persistent and appreciable rise in general price level.

1. Deflation
2. Stagnation
3. Recession
4. Inflation

Q. Select the correct statement/statements for the situation when a currency goes for 'devaluation' using the code given below:
1. Fall in the value of currency vis-a-vis international currencies.
2. Exports become more competitive.
3. Trading partners see fall in their exports.

1. 1 and 2
2. 2 and 3
3. 1 and 3
4. 1, 2 and 3

Q. Depreciation of currency means a ________.

1. fall in exchange value of a country by market forces
2. reduction in external value/exchange value of currency by the Government
3. reduction in external value / exchange value due to wear and tear
4. all the three

Q. Devaluation of currency means a ________.

1. reduction in external value /exchange value of currency by the Government
2. fall in exchange value of a country by market forces
3. reduction in currency value due to wear and tear
4. all the three

Q.

What Is the Current Reverse Repo Rate?

Q. Devaluation of currency means _____.

1. reduction in value of currency vis-a-vis other currencies
2. increase in value of currency vis-a-vis other currencies
3. permitting currency to seek its worth in other markets
4. fixing value of currency

Q. What is the meaning of devaluation of money?

1. Decrease in the external value of money
2. Decrease in the internal value of money
3. Decrease in both internal and external values of money
4. The government takes back currency notes of any denomination