Multiple choice

Devaluation means

  1. reduction in the value of home currency in terms of other currencies

  2. reduction in interest rates on export loans

  3. Subsidy on imports to make them cheaper in India

  4. subsidy on exports to make them cheaper in other countries
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A Correct answer
Explanation

Devaluation is the deliberate downward adjustment of a country's currency value relative to a foreign currency or standard. This makes exports cheaper and imports more expensive.

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