In both a floating exchange rate system and a fixed exchange rate system, exchange rates may rise or fall, but the wording used is different in each case. What is the correct terminology?
- Afloating rate decreases: depreciation; fixed rate increases: appreciation
- Bfloating rate decreases: depreciation; fixed rate increases: revaluation
- Cfloating rate decreases: devaluation; fixed rate increases: appreciation
- Dfloating rate decreases: devaluation; fixed rate increases: revaluation