Economics · International Trade
In the context of macroeconomics, what does 'Devaluation' of a currency mean?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A reduction in the value of currency caused by market forces of demand and supply
- 2An official reduction in the exchange value of a domestic currency against foreign currencies by the government✓
- 3An increase in the domestic purchasing power of the currency
- 4A process of withdrawing specific banknotes from circulation
Correct answer
An official reduction in the exchange value of a domestic currency against foreign currencies by the government
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