In a fixed exchange rate system, the government's action that increases the exchange rate of foreign currency is called?
In a fixed exchange rate system, the government's action that increases the exchange rate of foreign currency is called?
Solution
✅ Correct Option: 2
Under a fixed exchange rate system, when the government deliberately raises the price of foreign currency (making domestic currency cheaper), it is called devaluation. The opposite action, lowering the exchange rate of foreign currency, is revaluation.
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2025: 27 May Shift 2