What does the term 'devaluation' refer to?

Show Answers

Exchanging the rupee for goldReducing the value of a currency relative to another foreign currencyIncreasing the rupee's value compared to a foreign currencyNone of the above

Explanation

Devaluation is the deliberate reduction in the value of a country's currency relative to another currency. It does not involve converting the rupee into gold or making it more valuable against foreign currencies.