Rise in the price of a commodity means

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Q: 113 (CDS-I/2015)
Rise in the price of a commodity means

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,67,38,8,13,17,67

keywords: 

{'commodity means': [0, 0, 0, 1], 'commodity': [0, 0, 0, 1], 'currency': [0, 1, 0, 3], 'value': [0, 0, 1, 0], 'price': [0, 3, 1, 12]}

The correct answer is option 4: fall in the value of currency and rise in the value of commodity.

Option 1, rise in the value of currency only, is incorrect. If the value of currency increases, it would actually result in a decrease in the price of commodities, not an increase.

Option 2, fall in the value of currency only, is also incorrect. If the value of currency decreases, it would lead to an overall increase in the prices of commodities, but it doesn`t necessarily mean that the price of a specific commodity would rise.

Option 3, rise in the value of commodity only, is not the complete answer. While a rise in the value of a single commodity will increase its price, it doesn`t take into account the effect of the value of currency.

Therefore, option 4 is the correct answer. When the value of currency falls and the value of a commodity rises, it leads to a rise in the price of the commodity. This is because a weaker currency makes imports more expensive, which in turn increases the price.

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