In 1991 as an immediate measure to resolve the balance of payment crisis the rupee was against forei...........

In 1991, as an immediate measure to resolve the balance of payment crisis, the rupee was _______ against foreign currencies.

Revalued

Devalued

Appreciated

Depreciated

- Option 1: Revalued

- Revaluation means the currency's value is increased compared to foreign currencies.

- Usually done to counteract inflation or a surplus in balance of payments.

- Option 2: Devalued

- Correct Answer: Devaluation involves reducing the currency’s value relative to others.

- Used to make exports cheaper and more competitive abroad.

- This was done in 1991 to resolve India's balance of payments crisis.

- Option 3: Appreciated

- Appreciation indicates an increase in the currency's value.

- Makes imports cheaper but exports more expensive.

- Option 4: Depreciated

- Depreciation is a decline in currency value due to market forces, not official action.

- It impacts the economy similarly to devaluation but occurs naturally.

Submit Error