A large and sudden currency depreciation is widely known as:
A) a managed float.
B) a crawling peg.
C) an exchange rate or currency crisis.
D) a free float.

Question

Quizplus · Accepted Answer

A large and sudden currency depreciation is commonly referred to as an exchange rate or currency crisis. This occurs when there is a significant decrease in the value of a country's currency in relation to other currencies, leading to a loss of confidence in the currency and potential economic instability. Managed float, crawling peg, and free float are all different arrangements for managing a country's exchange rate, but none specifically refer to a sudden, large depreciation.

A Large and Sudden Currency Depreciation Is Widely Known As