Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

What does the term depreciation in the foreign exchange rate mean?

  • AThe government intervenes to reduce the exchange rate of the country’s currency.
  • BThe rate of exchange of exports for imports for a country deteriorates.
  • CThe rate of inflation in a country continues to rise.
  • DThe value of a country’s currency falls on the international exchange market.

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