Under a Flexible Exchange Rate System, a Decrease in the Value

question 240

Multiple Choice

Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of foreign currencies is referred to as

• A) an appreciation.
• B) a depreciation.
• C) a devaluation.
• D) a revaluation.

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Definitions:

Pain Receptors

Sensory neurons located throughout the body that respond to damaging stimuli by sending pain signals to the brain.

Temperature

A measure of the kinetic energy of the particles in an object or substance, indicative of how hot or cold it is.

Basilar Membrane

A structure in the cochlea of the inner ear that plays a key role in the sensory mechanism of hearing.

Binocular Cues

Visual information taken in by two eyes that enable us a sense of depth perception, such as binocular disparity.