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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.
 


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Answer (1)
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Correct Answer: Statement 1 is true and statement 2 is false.
 


Solution : Depreciation of currency has same effect on exports as devaluation of currency.
Increase in investment by MNCs in India leads to appreciation of domestic currency.
Hence option C is correct .

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