Practicing Success
Which of the following refers to decrease in the domestic currency by the government and market forces ? |
Government - Appreciation Market forces - Revaluation Government - Revaluation Market forces - Appreciation Government - Devaluation Market forces - Depreciation Government - Depreciation Market forces - Devaluation |
Government - Devaluation Market forces - Depreciation |
When the exchange rate is influenced by the government, it is known as Devaluation (decrease in value of domestic currency) /Revaluation of currency(increase in value of domestic currency) When the exchange rate is influenced by the market force of demand and supply, it is known as Depriciation (decrease in value of domestic currency) /Appreciation of currency (increase in value of domestic currency)
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