ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It becomes too plentiful
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becomes too portabale
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is divisible
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is durable
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Detailed explanation-1: -Devaluation is a decision that makes a currency lose value. Let’s look at the most common types of devaluation and what makes governments implement them. External devaluation. When a country’s production costs are high, its goods and services become more expensive abroad than its competitors’ and lose competitiveness.
Detailed explanation-2: -Time value of money exists due to inflation and preference of people for present consumption. On account of inflation, you might not be able to buy the same amount of goods in future compared to today as the purchasing power of money decreases due to inflation.
Detailed explanation-3: -When the supply of a good is greater than the demand for that good, a surplus ensues. This drives down the price of the good.
Detailed explanation-4: -Inflation is one of the main factors that reduce the value of your money over time. It means that the money you have at the beginning of the year will get you lesser goods and services at the end of the year.