Consider the following statements in regard to devaluation and depreciation of a currency:(1) Devaluation is an activity conducted by central government whereas depreciation happens due to market forces. (2) In both the devaluation and depreciation currency loses value against other currencies in a floating currency exchange market:Which of the statements given above is/are correct?

Consider the following statements in regard to devaluation and depreci

1.	Consider the following statements in regard to devaluation and depreciation of a currency:(1) Devaluation is an activity conducted by central government whereas depreciation happens due to market forces. (2) In both the devaluation and depreciation currency loses value against other currencies in a floating currency exchange market:Which of the statements given above is/are correct?
A.	1 only
B.	2 only
C.	Both 1 and 2
D.	Neither 1 nor 2
Answer» B. 2 only

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