In a System in Which There Is an Administered Exchange

question 144

Multiple Choice

In a system in which there is an administered exchange rate, what is the term used when the government sets the rate higher to buy fewer units of foreign currency?

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

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Definitions:

Presented

Shown, given, or made available for viewing or consideration.

Payment

The transfer of money or goods from one party to another as compensation for goods or services provided or as a fulfillment of a legal obligation.

Maker

In financial terms, it refers to the entity that creates or issues a promissory note or draft.

Drawee

The party in a financial transaction who is directed to pay a certain sum, typically the bank on which a check is drawn.