_______________ occurs under fixed exchange rates, when the monetary authorities increase the value of their currency in relation to the official reserve asset.
A)Appreciation
B)Depreciation
C)Devaluation
D)Revaluation

Question

Quizplus · Accepted Answer

Revaluation occurs when a country's monetary authorities increase the value of their currency in relation to the official reserve asset, usually the US dollar. This is done to adjust for changes in the market or to correct a previous devaluation. This is different from appreciation, which is a naturally occurring increase in the value of a currency based on market demand, and devaluation, which is a deliberate decrease in the value of a currency by the government.

_______________ Occurs Under Fixed Exchange Rates, When the Monetary Authorities