Question
General Knowledge Question on Business Finance
Th outcome of devaluation of currency is
A
Increased export and foreign reserve deficiency
B
Increased export and improvement in balance of payments
C
Increased import and improvement in balance of payments
D
Increased export and import
Answer
Increased export and improvement in balance of payments
Explanation
Solution
The correct option is (B): Increased export and improvement in balance of payments
Explanation: The outcome of devaluation of currency is Increased export and improvement in balance of payments. Devaluation makes a country's exports cheaper and more competitive in international markets, leading to an increase in export volumes and potentially improving the balance of payments.