Question

______ occurs when the currency exchange rate is officially lowered under a fixed exchange rate system. 

विकल्प

• Devaluation

• Depreciation

• Both devaluation and depreciation

• None of the above

Answer 1

Devaluation occurs when the currency exchange rate is officially lowered under a fixed exchange rate system.

Explanation:

It occurs when, under a fixed exchange rate system, the currency exchange rate is officially decreased. It exists in the context of a fixed exchange rate.