Which of the following statements is correct?

Question

Quizplus · Accepted Answer

Devaluation refers to the deliberate downward adjustment of a country's currency value relative to another currency, group of currencies, or standard, often in a fixed exchange rate system. This typically involves a country's government or central bank. The par value, or the stated value of the currency in terms of the foreign currency or standard to which it is pegged, is indeed reduced when the currency is devaluated, making both statements A and B correct.

Which of the Following Statements Is Correct