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. Devaluation of currency leads to

(1) Fall in domestic prices

(2) No effect in domestic prices

(3) Increase in domestic prices

(4) Any of the above

Answers were Sorted based on User's Feedback



. Devaluation of currency leads to (1) Fall in domestic prices (2) No effect in domestic price..

Answer / guest

( 3 ) Increase in domestic prices

Is This Answer Correct ?    143 Yes 13 No

. Devaluation of currency leads to (1) Fall in domestic prices (2) No effect in domestic price..

Answer / babu.t

Devaluation leads to increase the price of the domestic goods.
We have to give higher price for the domestic goods because value of the money diminished in terms of foreign currency. But at the same time price on domestic goods by foriegners
falls.It becomes more attractive to foreigners

Is This Answer Correct ?    31 Yes 7 No

. Devaluation of currency leads to (1) Fall in domestic prices (2) No effect in domestic price..

Answer / kamesh kumar

no effect in domestic prices because devaluation means fall
in the value of money in terms of other countries but the
domestic prices would be the same.

Is This Answer Correct ?    24 Yes 17 No

. Devaluation of currency leads to (1) Fall in domestic prices (2) No effect in domestic price..

Answer / reddy

Devaluation of currency mainly to increase the exports of a country. When export's are increased availability of the products domestically decreases.thus demand for the products manufactured in the country and imported costs increases so domestic price increases

Is This Answer Correct ?    3 Yes 0 No

. Devaluation of currency leads to (1) Fall in domestic prices (2) No effect in domestic price..

Answer / jitendra kumar

All the avobe

Is This Answer Correct ?    10 Yes 11 No

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