Which of the following is true of a currency devaluation?

Question

Quizplus · Accepted Answer

Currency devaluation refers to the deliberate lowering of a fixed exchange rate, which can be done by the government or central bank. It does not refer to the value of a currency increasing. The gold standard is no longer in use, but currency devaluation is still a tool available to governments. While not all governments may aspire to devaluation, it can be a useful tool in some economic circumstances.

Which of the Following Is True of a Currency Devaluation