Match the concepts in column A with their respective descriptions in column B.

**Column A:** a. Devaluation b. Depreciation c. Deflation d. Exchange control

**Column B:**
1: Decline in the market rate of exchange 2. Contraction of home currency 3. Foreign exchange rationing 4. Contraction of imports 5. Official reduction in external value of the currency

Question

Match the concepts in column A with their respective descriptions in column B.

**Column A:** a. Devaluation b. Depreciation c. Deflation d. Exchange control

**Column B:**
1: Decline in the market rate of exchange 2. Contraction of home currency 3. Foreign exchange rationing 4. Contraction of imports 5. Official reduction in external value of the currency

Accepted Answer

Let’s match each concept logically:
### a. Devaluation
**Official reduction in external value of currency**  a → 5
### b. Depreciation
 **Decline in exchange rate in market (demand-supply based)**  b → 1
### c. Deflation
 **Contraction of money supply (home currency)**  c → 2
### d. Exchange control
 **Foreign exchange rationing by government**  d → 3
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### Final Answer:
 **a-5, b-1, c-2, d-3**

Answer

Answer

Answer