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

Question

Quizplus · Accepted Answer

When a government using fixed exchange rates chooses to increase the rate, it means they are making their currency more valuable compared to other currencies. This is known as a revaluation. Therefore, the correct choice is A) is revalued.

If a Government Using Fixed Exchange Rates Chooses to Increase