A currency whose current market value is less than that predicted by an economic theory or model is a(n) ________________ currency.
A) overvalued
B) undervalued
C) reserve
D) vehicle

Question

Quizplus · Accepted Answer

An undervalued currency is one whose current market value is less than what economic theory or model predicts it should be worth. This means that the currency is considered "cheap" or "underpriced" relative to other currencies or its fundamental value.

A Currency Whose Current Market Value Is Less Than That