General Knowledge - Indian Economy - Discussion

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

Devaluation of a currency means

reduction in the value of a currency vis-a-vis major internationally traded currencies
permitting the currency to seek its worth in the international market
fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners
Answer: Option
Explanation:
No answer description is available. Let's discuss.
Discussion:
32 comments Page 1 of 4.

Suraj padhi said:   8 years ago
Decrease the value currency means the market value of currency has Decrease.

Minakshi said:   9 years ago
IMF is international monetary fund that means all international trading is done by that currency. Ex, dollar.

Sunil prusty said:   9 years ago
It means the purchasing power of money in the international market is lower than there currencies value.

Subrat said:   9 years ago
What is meant by IMF?

Pri said:   1 decade ago
@Pri.

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.
(1)

Ehsan said:   1 decade ago
@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.

Ishu said:   1 decade ago
Sometimes inflation is also caused.

Divyesh patel said:   1 decade ago
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.

Soumya said:   1 decade ago
How one country devaluate its currency? And does devaluation of currency is an effect of inflation?

DEVI SARAN said:   1 decade ago
Friends there is a huge difference between devaluation, depreciation and deflation.
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