The Main Reasons Why Governments Sometimes Chose to Devalue Their

question 10

Multiple Choice

The main reasons why governments sometimes chose to devalue their currencies is are:

• A) devaluation allows the government to fight domestic unemployment by stimulating export sector.
• B) devaluation improves the current account balance.
• C) devaluation preserves foreign reserves held by the central bank.
• D) All of the above.

---

Definitions:

Electroencephalography

A non-invasive method to record electrical activity of the brain using electrodes placed on the scalp.

Electrocardiography

The process of recording the electrical activity of the heart over a period of time using electrodes placed on the skin.

Electromyography

A procedure in which needle electrodes are inserted into some of the skeletal muscles and a monitor records the nerve impulses and measures conduction time; used to detect neuromuscular disorders or nerve damage.

Electrotherapy

A medical treatment using electric currents to stimulate nerves and muscles, promoting healing and reducing pain.