An increase in a fixed exchange rate from $2.00 per pound to $2.10 per pound is called a(n)________ of the pound.
A)devaluation
B)depreciation
C)appreciation
D)revaluation

Question

Quizplus · Accepted Answer

A revaluation occurs when a government or central bank formally increases the value of its currency in a fixed exchange rate system, in this case from $2.00 to $2.10 per pound.

An Increase in a Fixed Exchange Rate from $2