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: Option B
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.