Unformatted text preview: the exchange rate that equates the quantities of the currency supplied and demanded in the foreign exchange market 9. Devaluation: a reduction in the official value of a currency (in a fixed exchange rate system) 10. Revaluation: an increase in the official value of a currency (in a fixed exchange rate system) 11. Overvalued exchange rate: an exchange rate that has an officially fixed value greater than its fundamental value 12. Undervalued exchange rate: an exchange rate that has an officially fixed value less than its fundamental value 13. Foreign exchange reserves: foreign currency assets held by a central bank for the purpose of purchasing the domestic currency in the foreign exchange market 14. Speculative attack: a massive selling of domestic currency assets by financial investors...
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- Spring '14
- Exchange Rate, Foreign exchange market