Match the concepts in column A with their respective descriptions in column B.
| Column A | Column B |
| a. Devaluation | 1. decline in the market rate of exchange |
| b. Depreciation | 2. contraction of home currency |
| c. Deflation | 3. foreign exchange rationing |
| d. Exchange control | 4. contraction of imports |
| 5. official reduction in external value of the currency |
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. a-5, b-1, c-2, d-3.
The correct match:
| Column A | Column B |
| a. Devaluation | 5. official reduction in the external value of the currency |
| b. Depreciation | 1. decline in the market rate of exchange |
| c. Deflation | 2. contraction of home currency |
| d. Exchange control | 3. foreign exchange rationing |