Which of the Following Correctly Distinguishes Between Depreciation and Devaluation

question 40

Multiple Choice

Which of the following correctly distinguishes between depreciation and devaluation?

• A) Market interactions cause currencies to depreciate, but only governments can enact policies of devaluation.
• B) Market interactions can cause either, but policy decisions by governments can produce only depreciation.
• C) Market interactions can cause either, but policy decisions by governments can produce only devaluation.
• D) Market interactions can cause either, but only policy decisions by governments can produce a devaluation.
• E) None of the above.

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Definitions:

Payment of Rent

The act of providing monetary compensation typically on a monthly basis, by a tenant to a landlord, for the use of property such as residential housing or commercial space.

Exclusive Possession

The right of a tenant or lessee to use and control a property to the exclusion of others, including the landlord.

General Repair

Maintenance or fixing tasks performed to restore or maintain something, often a vehicle or building, in its original or functional condition.

Right of Reversion

A legal right allowing property ownership to revert back to the initial owner or their heirs upon the occurrence of a specified condition.