Economy
2021
External Sector
Balance of Payments
UPSC Practice Question

Consider the following statements : The effect of devaluation of a currency is that it necessarily

  1. improves the competitiveness of the domestic exports in the foreign markets
  2. increases the foreign value of domestic currency
  3. improves the trade balance Which of the above statements is/are correct?
B.1 and 2
A.1 only
D.2 and 3
C.3 only