NextQ19

Read the following statements – Assertion (A) and Reason (R). Choose one of the correct alternatives given below : Assertion (A) : Ceteris Paribus, Devaluation of domestic currency leads to an increase in National Income of a nation. Reason (R) : Devaluation of domestic currency refers to reduction in the value of domestic currency with respect to foreign currency, under the fixed exchange rate system.

Types of Exchange Rate SystemsStudy Simplify SpecialPYQ1MCQ
Question 18

Under the ________ Exchange Rate System, the Central Bank can control the rise / fall of foreign exchange rate in a range bound manners. (Fill up the blank with correct alternative.)

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