______ is a reduction in the value of the currencies.
A)Inflation
B)Deflation
C)Distention
D)Devaluation

Question

Quizplus · Accepted Answer

Devaluation is the reduction in the value of a currency in relation to other currencies. This can happen due to various reasons such as a decrease in demand for the currency or an increase in the supply of the currency. In contrast, inflation is a sustained increase in the general price level of goods and services in an economy, while deflation is a sustained decrease in the general price level. Distention is not a relevant term in this context.

______ Is a Reduction in the Value of the Currencies