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Author Question: What are the differences and similarities between a depreciation and devaluation of a currency? ... (Read 74 times)

joesmith1212

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on: Jun 30, 2018
What are the differences and similarities between a depreciation and devaluation of a currency?
 
  What will be an ideal response?

Question 2

Adam Smith created the theory of comparative advantage.
 
  Indicate whether the statement is true or false


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Cnarkel

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A depreciation of a currency takes place due to the mechanics of supply and demand and belongs to a flexible or floating exchange rate system. On the other hand, devaluation is due to the intervention by the monetary authority of a central bank of a country following a fixed exchange rate system. They both result in a lower value of the currency.

Answer to Question 2

FALSE


joesmith1212

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

zacnyjessica

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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