Mention the term for an official act of reducing the rate in which one currency is exchanged for another in international currency markets ?
Correct answer: B. Devaluation
- A. Devolution
- B. Devaluation
- C. Price cap
- D. Cut-rate
Explanation
Devaluation is an official reduction in a currency’s value under a fixed or managed exchange-rate system. Devolution means transfer of authority, not a change in currency value.
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