Q. “In the foreign exchange market when exchange rate of a domestic currency is cut down by its government against any foreign currency” – described as?

[A] Depreciation

[B] Devaluation

[C] Revaluation

[D] Appreciation

Answer: B
Notes:

Explanation: In the foreign exchange market when exchange rate of a domestic currency is cut down by its government against any foreign currency, it is called devaluation. It means official depreciation is devaluation.

Source: Ramesh Singh

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