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Question 4, Problem 5-13 FX Market (algorithmic) Part 1 of 2 HW Score: 30%, 3 of 10 points O Points: 0 of 1 Save
Question 4, Problem 5-13 FX Market (algorithmic) Part 1 of 2 HW Score: 30%, 3 of 10 points O Points: 0 of 1 Save Venezuelan Bolivar (A). The Venezuelan government officially floated the Venezuelan bolivar (Bs) in February 2002. Within weeks, its value had moved from the pre-float fix of Bs781-$1.00 to Bs1,021 = $1.00. a. Is this a devaluation or a depreciation? b. By what percentage did the value change? a. Is this a devaluation or a depreciation? (Select from the drop-down menu.) This is a case in which a government has changed its currency from a governmentally determined fixed rate to a reaime in which the currency is allowed to change in value based on supply and demand
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