For currencies, changes in the value of foreign exchange rates are called .
A) floating; revaluation or devaluation
B) floating; appreciation
C) fixed; appreciation or depreciation
D) fixed; revaluation or devaluation

Question

Quizplus · Accepted Answer

Changes in the value of foreign exchange rates for fixed currencies are called revaluation or devaluation. This is because the exchange rates are fixed by the government, and any change in the value of the currency must be done intentionally by the government through revaluation (increasing the value) or devaluation (decreasing the value).

For Currencies, Changes in the Value of Foreign Exchange Rates