A Decrease in a Fixed Exchange Rate from $1

question 76

Multiple Choice

A decrease in a fixed exchange rate from $1.75 per pound to $1.60 per pound is called a ________ of the pound.

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

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Definitions:

Debit Side

The left side of a ledger account that records increases in assets and expenses or decreases in liabilities and equity.

Debits

These are entries on the left side of accounting records, used to increase asset or expense accounts or decrease liabilities, equity, or revenue accounts.

Credits

Accounting entries that increase liabilities or equity or decrease an asset or expense.