Home PYQs UPPSC UPPSC MCQs Prelims 1994 (GS Paper I)

Question

The Devaluation is:

  1. Reduction of prices
  2. Deficit financing
  3. Loans from World Bank and I.M.F.
  4. Reduction in the value of currency in terms of gold

Answer:

Option D: Reduction in the value of currency in terms of gold

Detailed Solution:

The correct answer is “Reduction in the value of currency in terms of gold”.

Devaluation is a deliberate downward adjustment of a country's currency value relative to another currency or standard. This means the currency is worth less compared to other currencies.