In a fixed exchange rate system, the government's action that increases the exchange rate of foreign currency is called? Option 1: Revaluation Option 2: Devaluation Option 3: Dirty floating Option 4: Hedging

The answer is 'Devaluation'. View full solution:

CUET Economics - In a fixed exchange rate system, the government's action that increases the exchange rate of foreign currency is called? | PYQs + Solutions

CUET Economics 2026 6th June Shift 1

Macro

Easy

Revaluation

Devaluation

Dirty floating

Hedging

✅ Correct Option: 2