Under the Floating Exchange Rate System, a Fall in the Market

question 37

Multiple Choice

Under the floating exchange rate system, a fall in the market price of a currency is called:

• A)devaluation.
• B)depreciation.
• C)appreciation.
• D)revaluation.

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Definitions:

Alliances

Associations formed between countries, organizations, or individuals for mutual benefit or to achieve common goals.

Organize

To arrange and coordinate activities or items systematically for efficiency or clarity.

Plaintiff

An individual or group that brings a lawsuit against another party in a court of law, alleging harm or wrongdoing.

Defendant

An individual, company, or institution sued or accused in a court of law.