Indian-Economy
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Q.

Devaluation of a currency means:

 A.

permitting the currency to seek its worth in the international market

 B.

fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies

 C.

fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

 D.

official lowering of the value of a country's currency within a fixed exchange rate system

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Solution:
Option(D) is correct

Devaluation means official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency.


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