When the Value of One Currency Falls Relative to Another

question 45

Multiple Choice

When the value of one currency falls relative to another currency, the exchange rate for the first currency has

• A) depreciated.
• B) appreciated.
• C) demanded.
• D) revalued.

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Definitions:

Liberal Democracy

A political ideology and form of government characterized by fair, free, and competitive elections, along with the protection of civil liberties.

Formal Democracy

A system of government where official, structured, and institutionalized procedures are followed to elect representatives and make policy decisions.

Socialist Democracy

A political system that combines socialist economic principles with democratic governance, aiming for collective ownership and egalitarian distribution of resources within a democratic framework.

Global Spread

The widespread distribution or dissemination of phenomena, products, cultures, diseases, etc., across different countries and continents.