Read the two statements and choose the correct option.
I. Revaluation makes a country's exports cheaper abroad.
II. Devaluation is a deliberate cut in a currency's fixed value by the government.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Revaluation raises the currency's value, making exports dearer abroad. I is false.
II is the definition of devaluation.

Ten questions from Foreign Exchange Rate, at your own pace.

Ten questions from Foreign Exchange Rate, at your own pace.

Read the two statements and choose the correct option.I. Revaluation makes a country's exports cheaper abroad.II. Devaluation is a deliberate cut in a currency's fixed value by the government.