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WAEC Economics 1999 Question 29

Question 29

Balance of Payments and Exchange Rates

The reduction in the value of a country's currency in relation to the value of the currencies of other nations is known as

  1. A.deflation
  2. B.devaluation
  3. C.inflation
  4. D.revaluation
Show the answer and explanation

Answer: B (devaluation)

Explanation

Devaluation is an official cut in the value of a currency against other currencies.