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      Question

      What is the primary aim of currency devaluation? 

      A To encourage imports Correct Answer Incorrect Answer
      B To encourage exports Correct Answer Incorrect Answer
      C To encourage both imports and exports Correct Answer Incorrect Answer
      D To discourage both imports and exports Correct Answer Incorrect Answer

      Solution

      Devaluation lowers the value of a country's currency relative to others, making its exports cheaper and more competitive in international markets, while making imports more expensive.

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