Under a Flexible Exchange Rate System a Decline in the Value

question 76

Multiple Choice

Under a flexible exchange rate system a decline in the value of a currency relative to other currencies is a called a(n) ________ and under a fixed exchange rate system a decrease in the official value of a currency is called a(n) ________.

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

---

Definitions:

Partnership Debts

Liabilities or financial obligations incurred by a partnership in the course of its business activities.

Limited Liability

This refers to a business structure where the owners' personal assets are protected from company debts and liabilities.

Sole Proprietorship

A company that is both owned and run by one person, with no separate legal identity between the proprietor and the business itself.

Separate Legal Entity

A business structure that is legally considered an independent entity separate from its owners, such as a corporation or LLP.