Question

When the value of the currency falls as compared to other currencies, it is ______   

विकल्प

• Devaluation

• Depreciation

• Both devaluation and depreciation

• None of the above

Answer 1

When the value of the currency falls as compared to other currencies, it is depreciation.

Explanation:

Depreciation occurs when the value of a currency falls in comparison to other currencies. It exists in a flexible exchange rate environment. It's due to the forces of demand and supply.