Post the new economic policy India revalued its currency to improve export compatibility Choose from...........

Economics (CUET) Indian Economy on the eve of Independence

Post the new economic policy, India revalued its currency to improve export compatibility. Choose from the options below

True

False

Partially true

Can't be predicted

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Explanation:

- The idea of revaluing a currency is to increase its value relative to other currencies.

- Revaluation can make exports more expensive and imports cheaper.

- Option 1 (True): Revaluing a currency to improve export compatibility is generally not the usual practice. It's more common to devalue a currency to boost exports.

- Option 2 (False): Correct, as India would likely devalue, not revalue, to make exports more competitive.

- Option 3 (Partially true): Suggests some validity, but revaluation generally doesn't align with boosting exports.

- Option 4 (Can't be predicted): Currency decisions often depend on complex factors; however, the basic economic principle usually supports devaluation for export competitiveness.