What is called the reduction in the rate of a currency
Correct answer: B. Devaluation
- A. Devolution
- B. Devaluation
- C. Price cap
- D. Cut-rate
Explanation
Devaluation is an official reduction in the value of a country's currency against foreign currencies, usually under a fixed or managed exchange-rate system. Devolution concerns transfer of powers, not currency value.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Restriction on import or export of specified or all goods with a foreign nation by the Government is called ?
What is called the trade without restriction of tariffs, quotas, or foreign exchange controls ?
During a given period how the economic activity of a nation is measured?
Which country is the chief exporter of Tin ?
Of which mineral's chief exporter is Mexico ?
Which country is the chief exporter of coffee?