IndiaBIX

General Knowledge - Indian Economy - Discussion

Discussion Forum : Indian Economy - Indian Economy (Q.No. 69)
Indian Economy
69.

Devaluation of currency leads to

fall in domestic prices
increase in domestic prices
no impact on domestic prices
erratic fluctuations in domestic prices
Answer: Option
Explanation:
No answer description is available. Let's discuss.
Discussion:
12 comments Page 2 of 2.
Manoj said:   1 decade ago
How devaluation of currency increase the domestic prices.
Rakesh said:   1 decade ago
I am not sure about my answer but i think devaluation of currency makes our goods competitive in international market and it encourages exporter to export a lot. Hence goods will be send in greater amount for export (out of country) and it will create scarcity in domestic market and hence prices will increase.
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