If a government using fixed exchange rates chooses to increase the rate,the currency:
A)is revalued.
B)is devalued.
C)is upvalued.
D)appreciates.

Question

Quizplus · Accepted Answer

When a government using fixed exchange rates chooses to increase the rate, it means that they have decided to increase the value of their currency relative to the currency they are pegged against. This is known as a revaluation, as the currency's value is now "worth" more in terms of the pegged currency.

If a Government Using Fixed Exchange Rates Chooses to Increase