In a Fixed Exchange Rate System, a Decrease in the Exchange

question 90

Multiple Choice

In a fixed exchange rate system, a decrease in the exchange rate at which a currency is pegged is called a(n)

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

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Definitions:

Series Circuits

Electrical circuits in which components are arranged in a sequence such that the current flows through each component one after the other.

Voltage Drops

A reduction in voltage across a component or section of a circuit, indicating resistance or a loss of electrical power.

Resistance

A measure of the opposition to current flow in an electrical circuit, affecting how much current flows for a given voltage.

Circuit Breakers

A circuit protection device that acts like a switch to open the circuit when current flow becomes excessive.