Under which exchange rate appreciation and depreciation takes place and under which exchange rate devaluation and revaluation takes place respectively?
Under which exchange rate appreciation and depreciation takes place and under which exchange rate devaluation and revaluation takes place respectively?
Solution
✅ Correct Option: 2
Appreciation and depreciation are market-driven changes in a currency's value under a flexible exchange rate. Devaluation and revaluation are deliberate official changes made by the government or central bank under a fixed exchange rate.
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