Multiple choice

What does devaluation of a currency mean?

  1. Decrease in the internal value of money.

  2. Decrease in the external value of money.

  3. Decrease in both external and internal values of money

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

Devaluation is the deliberate downward adjustment of a country's currency value relative to a foreign currency or standard, which decreases its external purchasing power.

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