A ______ in the price of the domestic currency in terms of a foreign currency
ECONOMICS
JAMB 2023
A ______ in the price of the domestic currency in terms of a foreign currency is referred to as _____
- A. Decrease, appreciation
- B. Increase, de-appreciation
- C. Decrease, depreciation
- D. Increase, consolidation
Correct Answer: C. Decrease, depreciation
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.
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