General Knowledge - Indian Economy - Discussion

Discussion :: Indian Economy - Indian Economy (Q.No.6)


Devaluation of a currency means

[A]. reduction in the value of a currency vis-a-vis major internationally traded currencies
[B]. permitting the currency to seek its worth in the international market
[C]. fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
[D]. fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

Answer: Option A


No answer description available for this question.

Priyanka said: (Nov 23, 2010)  
What is the meaning of B, C, & D option?

Raj said: (Aug 3, 2011)  
I didnt understand plz explain me?

Div said: (Sep 10, 2011)  
That means, fall in the purchasing power of a currency, for instance, in international market, when a doller was equal to rs. 50, and later a dollar equals to rs. 35, that signifies tht the value of rupee has devaluated.

Preeti said: (Oct 9, 2011)  
Devaluation of a currency means that the market value of that currency has reduced.

Vishal Moudgill said: (Oct 23, 2011)  
In what cicumstances devaluation can be regarded a right measure adopted?

Nityasundar Manik said: (Jan 12, 2012)  
When the market value of a currency is reduced ,it is called as devaluation of currency .

Manoj said: (Jan 13, 2012)  
Any body have an idea - How one country devaluate its currency and why they do it?

Please if someone have an answer please reply on.

Rigzin Chosdon said: (Apr 19, 2012)  
The first answer is correct because for eg if we spent RS 48 for 1$ earlier but now we spent RS50 for 1$ that means the value of our Indian money is fall, As spent more our money for 1$.

Marina said: (May 29, 2012)  
Devaluation means loss of value of currency as compared to another country.

Mang Naulak Paite said: (Jun 28, 2012)  
The Government adopted Devaluation policy in order to attract and encourage import of goods from foreign Countries.

Rukmini said: (Nov 24, 2012)  
Devaluation of currency means reduction in the value of currency.

Ex. If we are sending Rs.45 for 1$ but now 1$=Rs50, It means we have send more.

It shows value of Rupee is weak as compared with dollar.

Tejaswi said: (Dec 9, 2012)  
There are two scenarios a) devaluation b) depreciation.

If value of currency was reduced due to market forces i.e. demand and supply its depreciation of currency.

But when the government or other legal authority reduces the value of their currency its called devaluation.

Aman Yadav said: (Dec 16, 2012)  
Sir please tell me what is the effect on export and import of the depreciation or devaluation?

Bhat said: (Jan 4, 2013)  
In reality devaluation refers when domestic currency of a country reduces or is been reduced in relation to other currency.

Sri Ram said: (Jan 8, 2013)  
Yes of course it is devalued with respect to other currencies particularly dollar or euro or pound.

Rubina said: (May 12, 2013)  
Can anybody explain me, What is the difference between devaluation, deflation and depreciation?

Shashank said: (Jul 31, 2013)  
How does the value of money gets devaluated?

What are the drawbacks if we do not devaluate money?

Prasad said: (Aug 16, 2013)  
Can anyone explain? Who has decided the currency rate of one country with respect to other country, and How it has been decided ?

Why can't 1 Rupee = 1$ ?

Amit said: (Oct 5, 2013)  
In international market for exchange of any goods and services the standard currency is dollar.

So if India want to buy something then he must need dollar and american give them dollar 1 dollar and take 50 rupee because demand of dollar is more than its supply. The rate change is changed continuously because of growth rate.

Srik said: (Oct 15, 2014)  
Devaluation is different the depreciation/appreciation of currency, so the option is wrong to me.

Dadu said: (Oct 29, 2014)  
How many times our currency devaluated?

Mukul Arora said: (Nov 23, 2014)  
What will be advantage to any country for depreciate its currency value?

Devi Saran said: (Dec 19, 2014)  
Friends there is a huge difference between devaluation, depreciation and deflation.

Soumya said: (Jan 10, 2015)  
How one country devaluate its currency? And does devaluation of currency is an effect of inflation?

Divyesh Patel said: (Jan 23, 2015)  
When we have to take the money for our country to other country at a time they will evaluate our currency that is create a big problem for our country.

Ishu said: (Feb 16, 2015)  
Sometimes inflation is also caused.

Ehsan said: (Mar 2, 2015)  
@Div - The example you explained, the purchasing power of rupee has appreciated.

Simple, you were buying a dollar for Rs.50. Now you are buying the same dollar for Rs.35. Now paying Rs.15 less for same dollar. It is the dollar which has actually depreciated vis-a-vis rupee.

Pri said: (Jun 3, 2015)  

Why dollar is more valued one, when comparing to Indian money.

Dollar is also one of the currency value why it is more valid. And why it is standardized currency?

Please tell me answer.

Subrat said: (May 25, 2016)  
What is meant by IMF?

Sunil Prusty said: (Sep 6, 2016)  
It means the purchasing power of money in the international market is lower than there currencies value.

Minakshi said: (Oct 10, 2016)  
IMF is international monetary fund that means all international trading is done by that currency. Ex, dollar.

Suraj Padhi said: (Apr 17, 2017)  
Decrease the value currency means the market value of currency has Decrease.

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