The lowering of the value of a currency by a nation's government is called ________.
A) devaluation
B) securitization
C) fundamental disequilibrium
D) currency hedging

Question

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Devaluation is the deliberate decision by a government to lower the value of its currency in relation to other currencies. This can be done in order to make a country's exports cheaper and more attractive to foreign buyers, or to reduce the foreign currency value of a country's debts. "Securitization" refers to the process of converting loans or other assets into tradable securities, while "fundamental disequilibrium" refers to a situation where a country's balance of payments is chronically imbalanced, typically due to structural economic factors. "Currency hedging" refers to various strategies for managing the risk of currency fluctuations in international business.

The Lowering of the Value of a Currency by a Nation's