Question

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.

Answer 1

Answer:

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.