Which one of the following statements is the most accurate?

Ram Sharma • 193.84K Points
Coach Economic

Q. Which one of the following statements is the most accurate?

(A) A devaluation occurs when the central bank lowers the domestic currency price of foreign currency, E, and a revaluation occurs when the central bank raises E.
(B) A devaluation occurs when the central bank raises the domestic currency price of foreign currency, E, and a revaluation occurs when the central bank lowers E.
(C) Devaluation occurs when the domestic currency price of foreign currency, E, is raised, and a revaluation occurs when E is lower
(D) None of these

Correct Answer - Option(B)

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