McqMate
| Q. |
The purpose of devaluation is to : |
| A. | be little foreign currencies |
| B. | encourage exports |
| C. | discourage exports |
| D. | encourage import |
| Answer» B. encourage exports | |
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Explanation: Devaluation in modern monetary policy is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged. It makes exports more competitive and imports more expensive. |
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