Which of the following statement/statements are true? Statement 1: Decrease in value of domestic currency in terms of foreign currency is called depreciation of foreign currency. Statement 2: Decrease in value of foreign currency in terms of domestic currency means appreciation of domestic currency.

Both the statements are true. Both the statements are false. Statement 1 is true and Statement 2 is false Statement 2 is true and Statement 1 is false

Statement 2 is true and Statement 1 is false

Decrease in value of domestic currency in terms of foreign currency is called depreciation of DOMESTIC currency or APPRECIATION of foreign currency. Decrease in value of foreign currency in terms of domestic currency means DEPRECIATION of FOREIGN currency or APPRECIATION of domestic currency.