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Question : The liberalization of the external sector in 1991 led to the devaluation of which currency?

 

Option 1: Indian Rupee

Option 2: US Dollar

Option 3: Euro

Option 4: Japanese Yen


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Indian Rupee


Solution : The correct answer is (a) Indian Rupee.

As part of the economic reforms in 1991, the Indian government introduced measures to liberalize the external sector, including allowing greater flexibility in exchange rates. This led to the devaluation of the Indian Rupee, meaning that its value decreased in relation to other currencies. Devaluation aimed to make Indian goods and services more competitive in international markets and promote exports.

 

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