A Devaluation of a Currency Under a Fixed-Exchange-Rate System Occurs

question 4

Multiple Choice

A devaluation of a currency under a fixed-exchange-rate system occurs when the level at which the currency is fixed is:

• A) increased.
• B) decreased.
• C) allowed to float.
• D) kept fixed within a band.

---

Definitions:

Payroll Taxes

Taxes imposed on employers and employees, based on the wages the employer pays to the employees.

Hours

Units of time equal to 60 minutes, often used to measure work or billing time in various contexts.

Fair Labor Standards Act

A U.S. law that sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay, and limitations on child labor.