A depreciation of a currency occurs when:

Related MCQs

• If interest rate parity holds, then the one-year forward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.
• Under a fixed exchange rate system, ____________________are official changes in the value of a country's currency relative to other currencies.
• __________ is the deliberate downward adjustment in the official exchange rate, reduces the currency's value.
• SDR is the official currency of
• Many countries were fixing the price of their currency in terms of gold:
• What is the effect of a currency devaluation under fixed exchange rates in the short run?
• If a country decreases the external value of its currency, it will affect:
• The supply of pounds to the currency market will be upward sloping if:
• An appreciation of the currency is likely to occur if:
• What is the effect of a currency devaluation under fixed exchange rates in the short run?