A revaluation can help reduce:
I. shortages of domestic currency.
II. surpluses of domestic currency.

Question

Quizplus · Accepted Answer

Revaluation involves the increase in the value of a country's currency relative to other currencies. This can help reduce shortages of domestic currency as it increases the supply of foreign currency, making it easier to purchase the domestic currency. However, revaluation is unlikely to help reduce surpluses of domestic currency as it would make exports more expensive, which could lead to a decrease in demand and an increase in domestic currency supply.

A Revaluation Can Help Reduce