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| Q. |
Devaluation of money means : |
| A. | decrease in the internal value of money |
| B. | decrease in the external value of money |
| C. | decrease in both internal and external value of money |
| D. | the government takes back currency notes of any denominations |
| Answer» A. decrease in the internal value of money | |
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Explanation: Devaluation refers to a decline in the value of a currency in relation to another, usually brought about by the actions of a central bank or monetary authority. Devaluation is sometimes used more generally to describe any significant drop in a currency's international exchange rate, although usually a decline caused by market forces with no government intervention is termed a depreciation. Devaluations are most often associated with developing countries that don't allow their currency prices to float freely on the open market. |
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