A unilateral move to reduce the value of one's own currency by changing a fixed or official exchange rate is known as:
Correct answer: D. devaluation
- A. revaluation
- B. reduction
- C. restructuring
- D. devaluation
Explanation
Devaluation is an official reduction in a currency's value under a fixed or managed exchange-rate system. Revaluation is the opposite, meaning an official increase in the currency's value.
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Practise International Political Economy
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