Given a two-country world,suppose Japan revalues the yen by 15 percent and South Korea revalues the won by 12 percent.This results in:
A) An appreciation in the value of both currencies
B) A depreciation in the value of both currencies
C) An appreciation in the value of the yen against the won
D) A depreciation in the value of the yen against the won

Question

Quizplus · Accepted Answer

Revaluation of a currency means increasing its value against other currencies. Therefore, the yen and the won have both appreciated in value.

Given a Two-Country World,suppose Japan Revalues the Yen by 15