Under a flexible exchange rate system, __________ is when a currency has increased in value relative to another currency.
A)depreciation
B)appreciation
C)capital inflow
D)devaluation

Question

Quizplus · Accepted Answer

Appreciation is when a currency has increased in value relative to another currency. Depreciation is the opposite, when a currency has decreased in value relative to another currency. Capital inflow refers to the movement of funds into a country, and devaluation is a deliberate decrease in the value of a currency by the government or monetary authority.

Under a Flexible Exchange Rate System, __________ Is When a Currency