Under a flexible exchange rate, when the price of domestic currency in terms of foreign currency increases 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 a flexible exchange rate, when the price of domestic currency in terms of foreign currency increases is called? | PYQs + Solutions

CUET Economics 2025 3 June Shift 1

Macro

Easy

Depreciation of domestic currency.

Appreciation of domestic currency.

Devaluation of domestic currency.

Revaluation of domestic currency.

✅ Correct Option: 2