Question : The currency of one country is said to appreciate when its value ________ in relation to another currency.
Option 1: increases
Option 2: decreases
Option 3: stabilizes
Option 4: remains constant
Correct Answer: increases
Solution : The correct answer is (a) increases.
When a currency appreciates, it means that it can buy more units of another currency or goods and services in international markets. This generally reflects a strengthening of the country's economy or positive market sentiment towards that currency.
Question : When a country's currency depreciates, it means that:
Question : When a country's currency appreciates, it means that:
Question : When a country's currency is undervalued, it means that:
Question : What is the primary objective of a country when it undertakes currency devaluation?
Question : What is the term used to describe a situation where a country's central bank fixes the value of its currency to another currency at a specified exchange rate?
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