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Question
When domestic currency loses its value in relation to a foreign currency in the international money market, it is a situation of:
Options
Currency appreciation
Currency depreciation
Currency devaluation
None of the above
MCQ
Solution
Currency depreciation
Explanation:
The term "depreciation of domestic currency" refers to a decrease in the value of a domestic currency in terms of a foreign currency as a result of a rise in the foreign exchange market's foreign exchange rate.
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