Th4.1: Changes in the Currency Flashcards
1
Q
What is an appreciation of the currency?
A
an increase in the value of the currency using floating exchange rates
2
Q
What is a depreciation of a currency?
A
a fall in the value of a the currency under floating exchange rates
3
Q
What is a revaluation of the currency?
A
when the currency is increased against the value of another under a fixed system
4
Q
What is a devaluation of a currency?
A
a decrease in the value of one currency against another under a fixed system
