The reduction in the value of a country's currency in relation to others is?...
COMMERCE
WAEC 2015
The reduction in the value of a country's currency in relation to others is?
- A. re denomination
- B. devaluation
- C. inflation
- D. deflation
Correct Answer: B. devaluation
Explanation
A devaluation is an official lowering of the value of a country's currencywithin a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency or currencybasket.
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