Under flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called : Option 1: Depreciation of domestic currency Option 2: Appreciation of domestic currency Option 3: Devaluation of domestic currency Option 4: Revaluation of domestic currency

The answer is 'Appreciation of domestic currency'. View full solution:

CUET Economics - Under flexible exchange rate, when the price of domestic currency in terms of foreign currency increases, it is called : | PYQs + Solutions

CUET Economics

Macro

Easy

Depreciation of domestic currency

Appreciation of domestic currency

Devaluation of domestic currency

Revaluation of domestic currency

✅ Correct Option: 2

Related questions:

CUET Economics 2022 Slot 5

Arrange the following statements relating to appreciation of domestic currency in the correct sequence.

(A) The demand curve for foreign exchange shifts to the right of the original demand curve

(B) Due to some reason the exchange rate falls to 1$ = Rs. 70

(D) This increase the demand for foreign goods and services by Indians

Choose the correct answer from the options given below :

22 May Shift 2

When the income of domestic consumers increases, their spending will Increase and thus spending on imported goods is also likely to increase. This leads to ............... of domestic currency?

27 May Shift 2

If a British resident wants to visit India on a vacation he will have to pay in ......

CUET Economics PYQs

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