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:

Judgments

Legal decisions made by a court regarding the rights and liabilities of parties in a legal action or proceeding.

Opinions

Opinions are personal beliefs or judgments that are not necessarily based on fact or knowledge.

Hindsight Bias

The tendency to believe, after an outcome is already known, that one would have foreseen it, often referred to as the "I-knew-it-all-along" effect.

"I Knew It All Along"

A cognitive bias, also known as hindsight bias, where people believe they accurately predicted an event or outcome that could not have been reasonably foreseen.