Under a fixed exchange rate system, a fall in the market price (the exchange rate value) of a currency is called a(n) _____ of that currency.

Name: Under a fixed exchange rate system, a fall in the market price (the exchange rate value) of a currency is called a(n) _____ of that currency.
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Question

Quizplus · Accepted Answer

Devaluation is the correct term for a decrease in the value of a currency within a fixed exchange rate system, as it is a deliberate downward adjustment made by the country's government or monetary authority.

Under a Fixed Exchange Rate System, a Fall in the Market