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What is the term used for a deliberate downward adjustment to the value of a country's currency, relative to another currency, group of currencies or standard?
  • a)
    Devaluation
  • b)
    Withdrawal
  • c)
    Demonetisation
  • d)
    Destablisation
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What is the term used for a deliberate downward adjustment to the valu...
Devaluation is the planned or market force reduction in the value of a currency's exchange value. It may improve the country's balance of payments situation by enhancing exports and reducing imports, however, it aggravates inflation for imported goods or those having significant import content. Thus, devaluation is the deliberate downward adjustment of a country's currency value. It is the decision of the government of a country to opt this method in order to help reduce trade deficit.
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What is the term used for a deliberate downward adjustment to the value of a countrys currency, relative to another currency, group of currencies or standard?a)Devaluationb)Withdrawalc)Demonetisationd)DestablisationCorrect answer is option 'A'. Can you explain this answer?
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