Match List - I with List - II.List - I
Key termList - II
ExplanationA. Appreciation I. This occurs when a currency increases in value relative to other currencies under a floating exchange rate system. B. Devaluation II. This occurs when the value of a currency in a fixed exchange rate is officially and deliberately reduced. C. Depreciation III. This occurs when a currency falls in value relative to other currencies under a floating exchange rate system. D. Revaluation IV. This occurs when the price of a currency operating in a fixed exchange rate system is officially and deliberately increased.
Matching Currency Exchange Rate Terms
This question requires matching key terms related to currency value changes (List - I) with their correct explanations (List - II). We need to analyze each term.
Currency Appreciation Explained
A. Appreciation corresponds to I. This term describes an increase in a currency's value relative to other currencies when operating under a floating exchange rate system.
Devaluation Explained
B. Devaluation corresponds to II. This is the official and deliberate reduction in a currency's value within a fixed exchange rate system.
Currency Depreciation Explained
C. Depreciation corresponds to III. This happens when a currency's value falls relative to others in a floating exchange rate system.
Revaluation Explained
D. Revaluation corresponds to IV. This is the official and deliberate increase in a currency's value within a fixed exchange rate system.
Final Matches
Based on the explanations:
- A matches with I (Appreciation under floating rates).
- B matches with II (Devaluation under fixed rates).
- C matches with III (Depreciation under floating rates).
- D matches with IV (Revaluation under fixed rates).
Therefore, the correct matching is A-I, B-II, C-III, D-IV.
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