Topics:
CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books
Rupee Devaluation 1991
In 1991, as an immediate measure to resolve the balance of payments crisis, the rupee was:
- Revalued against foreign currencies
- Devalued against foreign currencies — Correct Answer
- Pegged to the US dollar
- Replaced by a new currency
Explanation:
Correct Answer Explanation
The rupee was devalued against foreign currencies in 1991 as an immediate measure.
Key Points:
- Led to an increase in inflow of foreign exchange.
- Set the tone to free the determination of rupee value from government control.
- Now markets determine exchange rates based on demand and supply of foreign exchange.
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This multiple choice question is from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-3: LIBERALISATION, PRIVATISATION AND GLOBALISATION: AN APPRAISAL to strengthen your preparation.
