Multiple choice

“Devaluation “implies

  1. To increase the value of currency

  2. To issue new currency

  3. To decrease the value of currency in terms of foreign/another currency

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Devaluation means reducing the value of a country's currency relative to foreign currencies or gold. It makes exports cheaper and imports more expensive, used to improve trade balance.

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