Devaluation refers to the deliberate downward adjustment of a country's currency value relative to another currency, group of currencies, or standard. It makes the home currency less valuable compared to other currencies, thereby increasing the cost of imports and decreasing the cost of exports to foreign buyers.

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Devaluation Means

Question 11

Multiple Choice

Devaluation means:

A) To reduce the value of home currency in other currency
B) To appreciate the value of home currency
C) To increase the value of home currency in other currency.
D) To constant the value of home currency.

Correct Answer: