Question

the president of venezuela announced that the country would be devaluating the bolivar for the fifth time in nine years. the official rate is falling from 4.3 bolivar to the us dollar, to 6.3, a 32% devaluation. by increasing the bolivar value of exports of oil to the united states and other nations, the government hopes to alleviate a budget crisis caused by its increasing reliance on borrowing to meet spending obligations.
in response to the announcement, the people of venezuela lined up today to buy televisions, electronics, and airline tickets to protect themselves from projected price increases.
what has the president of venezuela done by devaluating the bolivar?
allowed the exchange rate to be set by supply and demand
allowed the exchange rate to remain unchanged for the near future
artificially increased the number of bolivars needed to buy one us dollar
artificially decreased the number of bolivars needed to buy one us dollar

Explanation:

Devaluation of a currency (bolivar here) means that more of the domestic currency is needed to buy one unit of a foreign currency (US dollar). The president artificially increased the number of bolivars needed to buy one US dollar (since devaluation makes the domestic currency weaker, so more bolivars per dollar). Among the options, the one stating "artificially increased the number of bolivars needed to buy one US dollar" is correct as devaluation involves the domestic currency losing value, requiring more of it to purchase the foreign currency.

Answer:

The option "artificially increased the number of bolivars needed to buy one US dollar" (the one in the bottom - right box among the four option boxes, or the one with the text "artificially increased the number of bolivars needed to buy one US dollar" depending on how the options are labeled visually).