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

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