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.
 
 
  Correct Answer:
 
 Statement 2 is true and statement 1 is false.
 
 
  Solution :
 
 Devaluation is a part of fixed exchange rate where as depreciation is a part of flexible exchange rate.
 
  Demand for American goods will rise in India due to every session of Indian currency.
  
  Hence option D is correct .
 
 
																   
																 
								 
              
              




 
                
             
                    
                 
								 
								 
								 
								 
								