According to the terminology associated with changes in currency values, which of the following choices is the case when a currency's value relative to other currencies is changed by a government?
A) depreciation and revaluation
B) devaluation and appreciation
C) devaluation and revaluation
D) depreciation and appreciation

Question

Quizplus · Accepted Answer

Devaluation refers to a deliberate decrease in the value of a currency relative to other currencies, while revaluation refers to a deliberate increase in the value of a currency relative to other currencies. Therefore, when a government changes the value of its currency relative to other currencies, it is either devaluing or revaluing it, not depreciating or appreciating it (which typically refers to market-driven changes in value). Choice C is the only option that includes both devaluation and revaluation.

According to the Terminology Associated with Changes in Currency Values