A decrease in the exchange rate under the fixed exchange rate system is called
A)revaluation.
B)depreciation.
C)devaluation.
D)appreciation.

Question

Quizplus · Accepted Answer

A decrease in the exchange rate under the fixed exchange rate system is typically known as devaluation. Depreciation and revaluation refer to decreases and increases in value under a floating exchange rate system, while appreciation refers to an increase in value under either system.

A Decrease in the Exchange Rate Under the Fixed Exchange