Question : Which of the following statement is correct?

• Depreciation of currency has same effect on exports as devaluation of currency.
• Increase in investment by MNCs in India leads to depreciation of domestic currency.

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.
 

Question : Which of the following statement is correct?

• Increase in demand for foreign goods means increase in demand for foreign currency.
• Under a manage floating exchange rate system, the government directly controls the exchange rate.

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.
 

Question : Which of the following statement is correct?

• Under manage floating rate system, central bank maintains reserves of foreign exchange
• Manage floating rate system is also known as Dirty floating.

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.
 

Question : Which of the following statement is correct?

• Devaluation and depreciation of currency are one and the same thing
• Demand for American goods will rise in India due to every session of Indian currency.

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.
 

Question : Which of the following statement is correct?

• Currency money is also termed as fiat money.
• Currency can be legally used to make payments of debts or other obligations.

Option 1: Both are true 
 

Option 2: Both are false 
 

Option 3: Statement 1 is true and statement 2 is false.
 

Option 4: Statement 2 is true and statement 1 is false.