Reduction in the value of domestic currency of a country through market forces is known as:
Depreciation is a fall in a currency's value caused by market forces. Devaluation refers to an official downward adjustment under a fixed or pegged exchange-rate…
Choose your answer
Reduction in the value of domestic currency of a country through market forces is known as:
Answer and explanation
Correct answer A
Depreciation is a fall in a currency's value caused by market forces. Devaluation refers to an official downward adjustment under a fixed or pegged exchange-rate arrangement, while appreciation and revaluation describe increases.
Practice for these exams
-
Telangana SET (TG SET)