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:

Fixed-Rate Mortgages

A type of mortgage where the interest rate remains the same throughout the term of the loan.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set.

Competitive Rate

An interest rate, price, or charge that is favorable compared to those offered by competitors.

Residences

Places where individuals live or dwell for a period of time.