CUET Economics - From the following statements choose the effects of devaluation of domestic currency. (A) Exchange rate is fixed. (B) Indian Government increases the exchange rate. (C) Domestic currency become cheaper. (D) The Exports of India will rise. Choose the correct answer from the options given below: 1. (A), (B), (D), (C). 2. (A), (B), (C), (D) 3. (B), (C), (A), (D) 4. (D), (B), (C), (A). | PYQs + Solutions

CUET Economics 2025 31 May Shift 1

Macro

Medium

(A), (B), (D), (C).

(A), (B), (C), (D)

(B), (C), (A), (D)

(D), (B), (C), (A).

✅ Correct Option: 2

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Suppose that government bonds in country A pay 8 per cent rate of interest whereas equally safe bonds in country B yield 10 per cent. The interest rate differential is 2 per cent. Arrange the consequences of the same in sequential order.

(A) People will find investing in country B more attractive and will therefore demand less of country A's currency.

(B) Depreciation of country A's currency and an appreciation of country B's currency.

(C) Investors from country A will be attracted by the high interest rates in country B and will buy the currency of country B selling currency of country A.

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Choose the correct answer from the options given below:

CUET Economics 2025 31 May Shift 1 PYQs

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