A decrease in a fixed exchange rate from $1.75 per pound to $1.60 per pound is called a(n)________ of the pound.
A)devaluation
B)depreciation
C)appreciation
D)revaluation

Question

Quizplus · Accepted Answer

A decrease in a fixed exchange rate, such as from $1.75 to $1.60 per pound, is referred to as a devaluation of the currency (in this case, the pound). This term is specifically used when the value of a currency is lowered by decision of the government or monetary authority under a fixed exchange rate system.

A Decrease in a Fixed Exchange Rate from $1