Devaluation is often used to boost exports (as they become cheaper for foreign buyers) and discourage imports (as they become more expensive domestically), aiming to improve the trade balance. However, it can also fuel inflation due to higher import costs.
Devaluation of currency leads to:
Asked in westbengal/WBCS Main 2019 Paper 5 2019 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
More Economic Development questions
- The simple interest on a sum of ₹ 8,000 at a certain rate percent per annum for 3 years is ₹ 3,600. If the interest is compounded 8-monthly on the same sum at the same interest rate, then total compound interest after 2 years will be - Question not attempted
- Which of these is not a quantitative method of credit control?
- If statutory Cash Reserve Ratio (CRR) is People's Cash Withdrawal Ratio (PR) is 0.1, then what will be the value of credit multiplier?
- In which of the following years the Indian Rupee was devalued for the second time ?
- If the Cash-Reserve Ratio is lowered by the R.B.I., what will be its impact on credit - creation?
- What is correct regarding Repo rate?
- What is the full form of CRR?
- The full form of 'SLR' popularly used in banking sector is