According to the terminology associated with changes in currency values, which of the following choices is the case when a currency's value relative to other currencies is changed by a government?

A) depreciation and revaluation.

B) devaluation and appreciation.

C) devaluation and revaluation.

D) depreciation and appreciation.

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5 November, 17:00

According to the terminology associated with changes in currency values, which of the following choices is the case when a currency's value relative to other currencies is changed by a government?

A) depreciation and revaluation.

B) devaluation and appreciation.

C) devaluation and revaluation.

D) depreciation and appreciation.

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Answers (1)

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Adolfo Leonard · Answer 1

C) devaluation and revaluation

Explanation:

Devaluation and revaluation is the way that government changes the exchange rate of it's currency in relation to others.

Devaluation is the reduction of the exchange rate of a countrie's currency usually against the United States dollar. This reduces the currency value in relation to the foreign currency.

Revaluation on the other hand is when a country increases the exchange rate, making the value higher against foreign currency.