CUET Preparation Today
In which of the following situations will domestic currency be said to be depreciated? |
Increase in value of domestic currency in terms of foreign currency Increase in value of foreign currency in terms of domestic currency Decrease in value of native currency in terms of domestic currency None of them |
Increase in value of foreign currency in terms of domestic currency |
Suppose, one dollar = 40 rupees and increase in value of foreign currency in terms of domestic currency means now one dollar = 60 rupees (say). So, one rupee = 1/40 dollar and now one rupee = 1/60 dollar. So Indian rupee i.e. domestic currency has depreciated. |
