Consider the following statements regarding currency wars that are often seen in the news:
1. Currency war is a situation when countries devalue their currency deliberately to make their exports competitive.
2. Currency war is a situation when one country mops up a foreign currency from the international market in order to create a trade imbalance in that country.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 nor 2
• Currency wars are triggered when nations either allow their currencies to weaken appreciably or devalue them to gain a competitive advantage over trade rivals.
• Such competitive lowering of currency values, using monetary and exchange rate instruments, is described as “international currency wars”.
The term 'West Texas Intermediate', sometimes found in news, refers to a grade of
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