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Currency and Inflation Questions and Answers for Competitive Exams

Q.

‘Devaluation’ means:

[A] reduction in the value of a currency vis-a-vis major internationally traded currencies
[B] permitting the currency to seek its worth in the international market
[C] fixing the value of the currency in conjunction with the movement in the value of a basket of pre-determined currencies
[D] fixing the value of currency in multilateral consultation with the IMF, the World Bank and major trading partners

Answer & Explanation

Answer: Option [A]

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