Question

Devaluation means

• A. Rise in the general level of prices
• B. Decrease in the value of money in terms of foreign currency
• C. Decrease in the purchasing power of money
• D. Quantity of money is exceeding the amount of goods

Answer 1

The Correct Option is B

Devaluation refers to the deliberate downward adjustment of a country's currency value relative to other currencies or a standard, typically within a fixed exchange rate system. It is a monetary policy tool used by governments to enhance the competitiveness of their exports and manage trade imbalances.

The correct option is (B): Decrease in the value of money in terms of foreign currency