NextQ26

Read the following statements – Assertion (A) and Reason (R) carefully. Choose the correct option from those given below : Assertion (A) : Other things remaining constant, devaluation of domestic currency may lead to rise in National Income of the nation. Reason (R) : Devaluation of domestic currency refers to reduction in the value of domestic currency by the government with respect to foreign currency under the fixed exchange rate system.

Question 25

Market forces of demand and supply, actively interact under __________ exchange rate system to determine the foreign exchange rate. (Choose the correct option to fill in the blank)

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