The reduction in the value of a country’s currency in relation to others is?

A. redenomination
B. devaluation
C. inflation
D. deflation

Correct Answer: Option B

B. devaluation

Explanation

A devaluation is an official lowering of the value of a country’s currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency or currency basket.