English Language · Reading Comprehension - Author Agreement
Based on standard macroeconomic analysis of currency valuation, which of the following statements is the author most likely to agree with regarding currency depreciation?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A central bank must intervene aggressively to stem any minor depreciation in currency value.
- 2The fact that the rupee is declining against major world currencies is intrinsically catastrophic.
- 3Currency depreciation is not a cause for worry in itself, but if underlying macroeconomic fundamentals are weak, it signals concern.✓
- 4It is always a major cause for panic whenever a nation's currency depreciates.
Correct answer
Currency depreciation is not a cause for worry in itself, but if underlying macroeconomic fundamentals are weak, it signals concern.
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