Question

Which of the following is/are correct matches?

A	B
A. Devaluation of a currency	Improves the competitiveness of the domestic exports in foreign countries
B. Credit rating agencies	Regulated by the Reserve Bank of India
C. Acquiring new technology	Capital expenditure

How many of the above pairs is/are correctly matched?

1. Only one
2. Only two
3. All three
4. None of the above

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Answer 1

Answer: (2) Only two

Explanation:

Let's examine each pair:

A. Devaluation of a currency – Improves the competitiveness of the domestic exports in foreign countries

• Correct. Devaluation of a currency makes a country's exports cheaper for foreign buyers, thereby improving the competitiveness of domestic products in international markets.

B. Credit rating agencies – Regulated by the Reserve Bank of India

• Incorrect. Credit rating agencies in India are regulated primarily by the Securities and Exchange Board of India (SEBI), not the Reserve Bank of India (RBI).

C. Acquiring new technology – Capital expenditure

• Correct. Acquiring new technology typically involves significant investment and is considered capital expenditure, as it is expected to provide long-term benefits to the organization.

Conclusion:

• A and C are correct, while B is incorrect. Therefore, the correct answer is (2) Only two.