Economics 9708 · AS & A Level · 6.4

6.4 — practice question

In both a floating exchange rate system and a fixed exchange rate system, exchange rates may rise or fall, but the terms used are not the same in each case. What is the correct terminology?

  • Afloating decrease: depreciation; fixed increase: appreciation
  • Bfloating decrease: depreciation; fixed increase: revaluation
  • Cfloating decrease: devaluation; fixed increase: appreciation
  • Dfloating decrease: devaluation; fixed increase: revaluation

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