Question

Lowering in the official value of a currency with respect to gold or foreign currency is called:

• A. depreciation
• B. devaluation
• C. deflation
• D. denominator

Answer 1

The correct option is B devaluation

A devaluation is an official lowering of the value of a country's currency within a fixed exchange-rate system, in which a monetary authority formally sets a lower exchange rate of the national currency in relation to a foreign reference currency or currency basket.