Q. Devaluation of currency means the reduction in the value of a currency vis-à-vis which of the following?
Answer: The value of major internationally traded currencies of the world
Notes: Devaluation of currency refers to a deliberate reduction in the value of a currency relative to other major internationally traded currencies. This is often done by a country's government or central bank to boost exports by making them cheaper for foreign buyers. For example, when the British pound was devalued in 1967, it aimed to improve the UK's trade balance. Devaluation can lead to inflation as import prices rise.