Tuesday, June 2, 2015

Day 44 - Questions


Day 44 - Devaluation and Revaluation

( Devaluation and Revaluation, Devaluation vs. Depreciation, Devaluation vs. Redenomination)


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1.  If government deliberately decreases the value of its currency, then it is known as -
a.  Appreciation of currency
b.  Depreciation of currency
c.  Revaluation of currency
d.  Devaluation of currency

2.  If government deliberately increases the value of its currency, then it is known as -
a.  Appreciation of currency
b.  Depreciation of currency
c.  Revaluation of currency
d.  Devaluation of currency

3.  If market forces of the world economy decreases the value of a currency, without intervention of governments, then it is known as -
a.  Appreciation of currency
b.  Depreciation of currency
c.  Revaluation of currency
d.  Devaluation of currency

4.  If market forces of the world economy increases the value of a currency, without intervention of governments, then it is known as -
a.  Appreciation of currency
b.  Depreciation of currency
c.  Revaluation of currency
d.  Devaluation of currency

5.  If the face value of a currency is changed (increased or decreased), without changing the foreign exchange rate/conversion rate, the it is known as -
a.  Appreciation or Depreciation of currency
b.  Revaluation or Devaluation of currency
c.  Re-denomination of currency
d.  None of the above




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