Which one of the following statements is the most accurate?
A) Devaluation reflects a deliberate government decision.
B) Depreciation reflects a deliberate government decision.
C) Devaluation reflects a deliberate government decision while depreciation is an outcome of government actions and market forces acting together.
D) Depreciation reflects a deliberate government decision while devaluation is an outcome of government actions and market forces acting together.
E) Devaluation and depreciation have the same meaning and the same causes.

Question

Quizplus · Accepted Answer

Devaluation specifically refers to a deliberate decision by a government to lower the value of their currency, while depreciation is a more general term used to describe a decrease in value of a currency that can be caused by a combination of government actions and market forces. Therefore, option C is the most accurate as it acknowledges both the deliberate government decision aspect of devaluation and the combined government and market forces aspect of depreciation.

Which One of the Following Statements Is the Most Accurate