Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of foreign currencies is referred to asAnswer1. an appreciation.2. a depreciation.3. a devaluation.4. a revaluation.

Option 2. Depreciation Explanation Decrease in value of domestic currency in terms of foreign…

Answered: Under a flexible exchange rate system,…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter27: Multinational Financial Management

Section: Chapter Questions

Problem 2Q

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Under a flexible exchange rate system, a decrease in the value of a domestic currency in terms of foreign currencies is referred to as Answer 1. an appreciation. 2. a depreciation. 3. a devaluation. 4. a revaluation.