A ………… in the price of the domestic currency in terms of a foreign currency is referred to as ………….
- Decrease, appreciation
- Increase, de-appreciation
-
Decrease, depreciation
- Increase, consolidation
The correct answer is: C
Explanation
Currency depreciation is a fall in the value of a currency in a floating exchange rate system. Therefore, a decrease in the price of the domestic currency in terms of a foreign currency is referred to as depreciation.