In managed floating the gov interfere to influence the foreign exchange price when the price goes beyond a certain limit .. but initially the price increases or decreases due to market forces therefore initially depreciation or appreciation happen and then gov does devaluation or revaluation..... then why only devaluation is correct here ? And also ncert doesn't mentioned this in the textbook
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Your confusion is valid, but the question is using a very specific convention that exams follow.
In economics, there are two separate dimensions:
who causes the change, and in what direction the change is.
Depreciation and appreciation are market driven.
Devaluation and revaluation are government driven.
Now look carefully at the question. It says “managed floating rate”. This implies government intervention, not a purely free-market movement.
Next, it says “exchange rate of foreign currency increases”. This means foreign currency becomes more expensive, so domestic currency weakens.
So we combine both:
government-influenced system + domestic currency weakening
That combination corresponds to devaluation.
Thankss