Question : When a country's currency is undervalued, it means that:

Option 1: Its value increases relative to other currencies
   

Option 2: Its value decreases relative to other currencies
 

Option 3: Its value remains the same as other currencies

Option 4: Its value cannot be determined accurately

Question : When a country's currency appreciates, it means that:

Option 1: Its value decreases relative to other currencies
  

Option 2: Its value increases relative to other currencies
 

Option 3: It remains stable against other currencies

Option 4: It has no impact on other currencies

Question : The currency of one country is said to appreciate when its value ________ in relation to another currency.

Option 1: increases
 

Option 2: decreases
 

Option 3: stabilizes

Option 4: remains constant

Question : What is the term used to describe a situation where a country's central bank fixes the value of its currency to another currency at a specified exchange rate?

Option 1: Currency intervention
  

Option 2: Currency hedging
 

Option 3: Currency manipulation

Option 4: Currency pegging

Question : What is the term used to describe a situation where a country's central bank actively buys or sells its own currency in the foreign exchange market to influence its value?

Option 1: Currency manipulation
   

Option 2: Currency pegging
    

Option 3: Currency arbitrage

Option 4: Currency intervention