In order to promote exports in a fixed exchange rate system, the government can opt for- Option 1: Devaluation of domestic currency Option 2: Appreciation of domestic currency Option 3: Depreciation of domestic currency Option 4: Revaluation of domestic currency

The answer is 'Devaluation of domestic currency'. View full solution:

CUET Economics - In order to promote exports in a fixed exchange rate system, the government can opt for- | PYQs + Solutions

CUET Economics 2026 12th May Shift 1

Macro

Easy

Devaluation of domestic currency

Appreciation of domestic currency

Depreciation of domestic currency

Revaluation of domestic currency

✅ Correct Option: 1

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Match List-I with List-II

List-I	List-II
(A) Devaluation	(I) When the government decreases the exchange rate of foreign currency.
(B) Foreign Exchange Market	(II) Exchange rate is determined by the market forces.
(C) Revaluation	(III) The market in which national currencies are traded for one another.
(D) Floating Exchange Rate	(IV) Government action increases the exchange rate of foreign currency.

Choose the correct answer from the options given below: