UPSC 1999 › Indian Economy › External Sector & Balance Of Payments

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UPSC 1999 · Q99 · Indian Economy › External Sector & Balance Of Payments · Save

Assertion (A): Devaluation of a currency may promote export.

Reason (R): Price of the country's products in the international market may fall due to devaluation.

(a) Both A and R are true, and R is the correct explanation of A
(b) Both A and R are true, but R is not a correct explanation of A
(c) A is true, but R is false
(d) A is false, but R is true
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Answer: (a) Both A and R are true, and R is the correct explanation of A