Economics · Foreign Exchange and Devaluation
Consider the following statements regarding the economic consequences of currency devaluation: 1. It results in a rise in the price of imported goods in terms of the domestic currency. 2. It results in a rise in the price of domestic export goods in terms of foreign currencies. 3. It tends to increase the supply of foreign currency in the country. 4. It tends to increase the demand for domestic currency in foreign markets. Which of the statements given above are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 13 and 4 are correct
- 22 and 3 are correct
- 31, 3 and 4 are correct✓
- 4All of these are correct
Correct answer
1, 3 and 4 are correct
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