The correct answer is Decrease in the external value of moneyDevaluation is the intentional downward adjustment of a country's money's value compared to another currency, currency category, or currency standard. This monetary policy instrument is used for countries with a fixed exchange rate or semi-fixed exchange rate. Additional InformationIn comparison to one or more other currencies, a currency devalues when its value decreases. Money devaluation means a reduction in a country's currency value by its monetary authority, in the case of India, it is RBI. Under a fixed exchange rate, the devaluation of a currency can take place. In other international currencies, the monetary authority sets the price of the domestic currency. The term devaluation is used when, under the Fixed-Rate System, the government decreases the value of a currency. It is called depreciation if the value of the currency falls under the Floating Rate Structure.