Economics · Indian Economy
What does currency devaluation mean within the context of an economy?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An increase in the official value of the domestic currency relative to foreign currencies
- 2A deliberate reduction in the official value of the domestic currency relative to a foreign benchmark✓
- 3Maintaining a strictly fixed exchange rate peg through central bank interventions
- 4A complete replacement of the standard domestic currency notes with a digital alternative
Correct answer
A deliberate reduction in the official value of the domestic currency relative to a foreign benchmark
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