Question

When an indian importing firm wants to import u.s.-made products, it must first secure permission and dollars from the reserve bank of india. this type of restriction is known as a?

Answer 1

Based on the given scenario above, the type of restriction that is being shown is called CURRENCY DEVALUATION. When there is devaluation in the currency, this would mean that the given currency would have a lesser value as based on an exchanged rate system with reference to foreign currency.