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.
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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.
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