Which of the following is the most likely reason for revaluation of a currency?

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Which of the following is the most likely reason for revaluation of a currency?

A. To increase the amount of exports

B. To stimulate the local economy

C. To increase balance-of-trade surplus

D. To reduce inflation

business finance

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Answer 1

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Answer #1

Ans D. To reduce inflation

When the currency is revalued, it impact inflow and outflow of the currency. Due to this there is impact on the price of the goods helping in reducing/ hiking the inflation.

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Answer 2

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