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Topic Devaluation
Asked 4 times across 2 UPSC exams over 29 years (1994–2023), peaking in 2021.
Key insights
- Most tested in CSE — 3 of 4 PYQs
- Most asked in 2021
- Recurs across 4 years (1994–2023)
How it travelled across exams
First appearance in each exam — the same idea, reframed.
CSE 1994 → CDS 2023
How the concept evolved
Long-running — most appearances (2 of 4) predate 2016, and it still returns.
Related concepts
Ideas UPSC tests alongside this one — keep exploring.
Sample questions
You've seen the pattern — here are a few of the actual PYQs.
CDS2023
Which of the following is/are the effects of devaluation or depreciation of currency ?
- It leads to increase in imports and decrease in exports
- It leads to increase in exports and decrease in imports
- It leads to increase in domestic inflation
- It leads to decrease in domestic inflation
Select the correct answer using the code given below :
- A 1 and 3 only
- B 1 and 4 only
- C 2 and 3 only ✓
- D 3 only
✓ Correct answer: (C)
Economy › External Sector & Trade
CSE2021
Consider the following statements : The effect of devaluation of a currency is that it necessarily
- improves the competitiveness of the domestic exports in the foreign markets
- increases the foreign value of domestic currency
- improves the trade balance
Which of the above statements is/are correct?
- A 1 only ✓
- B 1 and 2
- C 3 only
- D 2 and 3
✓ Correct answer: (A)
Economy › External Sector & Trade
CSE2000
Assertion (A)The rate of growth of India's exports has shown an appreciable increase after 1991
Reason (R)The Government of India has resorted to devaluation
- A Both A and Rare true and R is the correct explanation of A ✓
- B Both A and R are true but R is not a correct explanation of A
- C A is true but R is false (
- D A is false but R is true
✓ Correct answer: (A)
Economy › External Sector & Trade
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