In 2005, China increased the price of its currency while continuing to pursue a fixed exchange rate. This change in policy is called:
A) an appreciation.
B) a revaluation.
C) a devaluation.
D) a depreciation.
E) a peg.

Question

Quizplus · Accepted Answer

China's change in policy, increasing the price of its currency while maintaining a fixed exchange rate, is called a revaluation. A revaluation is the opposite of a devaluation, which involves the intentional decrease in the value of a currency.

In 2005, China Increased the Price of Its Currency While