Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Open Economy Macro Economics

Question:

Increase in value of foreign currency in terms of domestic currency is _________ of domestic currency.

Which of the following options suits the best in the above blank?

Options:

Appreciation

Depreciation

Devaluation

Revaluation

Correct Answer:

Depreciation

Explanation:

Increase in value of foreign currency in terms of domestic currency means appreciation of foreign currency and this in turn implies depreciation of domestic currency.