When the domestic currency strengthens under a fixed exchange-rate system,this is called
A)a depreciation.
B)an appreciation.
C)a devaluation.
D)a revaluation.

Question

Quizplus · Accepted Answer

When the domestic currency strengthens under a fixed exchange-rate system, it is called a revaluation. A revaluation is when a government decides to increase the value of its currency relative to another currency or a basket of currencies.

When the Domestic Currency Strengthens Under a Fixed Exchange-Rate System,this