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A rise in domestic currency value under a Fixed Exchange Rate System is called what?

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Question

A rise in domestic currency value under a Fixed Exchange Rate System is called what?

Options

  • Revaluation

  • Speculation

  • Appreciation

  • Depreciation

MCQ
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Solution

Revaluation occurs under a Fixed Exchange Rate System. It is an official decrease in exchange rate, making the domestic currency costlier.

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