Economics · Foreign Exchange Rate
Read the following statements carefully: Statement 1: Devaluation of currency is said to occur when the official value of the currency is decreased under the Fixed Exchange Rate System. Statement 2: Under the Floating Exchange Rate System, competent authorities do not maintain foreign exchange reserves. In light of the given statements, choose the correct option from the following:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both Statements 1 and 2 are false.
- 2Both Statements 1 and 2 are true.
- 3Statement 1 is false and Statement 2 is true.
- 4Statement 1 is true and Statement 2 is false.✓
Correct answer
Statement 1 is true and Statement 2 is false.
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