What is meant by the devaluation of a currency?
- AReduction in the value of a currency relative to major internationally traded currencies
- BAllowing the currency to find its value in the international market
- CFixing the value of currency with the movement of a pre-determined basket of commodities
- DFixing the value of currency in multilateral consultation with IMF and World Bank
Solution & Step-by-step Explanation
Devaluation refers to the deliberate downward adjustment of the official value of a country's currency relative to a baseline, typically major foreign anchor currencies or baskets of traded currencies, usually enacted by the monetary authority.