GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Devaluation of the currency is associated with
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Reduction in the value of currency
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Increase in the value of currency
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Both (A) and (B)
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None of these
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Explanation:
Detailed explanation-1: -Devaluation is the deliberate downward adjustment of a country’s currency value. The government issuing the currency decides to devalue a currency. Devaluing a currency reduces the cost of a country’s exports and can help shrink trade deficits.
Detailed explanation-2: -Detailed Solution. The correct answer is a Reduction in the value of a currency vis-a-vis major internationally traded currencies. Devaluation occurs when a country intentionally reduces the value of its currency relative to one or more foreign countries.
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