Economics 9708 · AS & A Level · 6.4

6.4 — practice question

A rise or fall in exchange rates may happen in both a floating exchange rate system and a fixed exchange rate system, but the terminology used differs in each case. What is the correct terminology?

  • Adecrease in floating: depreciation; increase in fixed: appreciation
  • Bdecrease in floating: depreciation; increase in fixed: revaluation
  • Cdecrease in floating: devaluation; increase in fixed: appreciation
  • Ddecrease in floating: devaluation; increase in fixed: revaluation

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI