Home / Aptitude Tests / Economics / The reduction in the...

The reduction in the value of a country’s currency ...

The reduction in the value of a country’s currency in relation to the value of the currencies of other nation is known as___________

A.

Deflation

B.

Inflation

C.

Devaluation

D.

Revaluation

Correct answer is C

Devaluation is the official reduction of the exchange value of national currency in relation to the currencies of other countries. It is also the fall in the exchange value of a country's currency in relation to the currencies of other countries.