Question

A country's currency depreciates relative to a foreign currency if

it takes more of the home currency to buy the foreign currency.

it takes less foreign currency to buy the home currency.

the prices of goods in the home country increases faster than in the foreign country.

Both it takes more of the home currency to buy the foreign currency and it takes less foreign currency to buy the home currency are correct.

Answer 1

Depreciation or devaluation of currency means the currency becomes weaken as compared to other currency

For example currently $1US is approximately equal to 76₹, it means here Indian rupees is depreciated against US dollar and vice versa

Now if any country currency depreciates it means the home currency will need more to buy the foreign currency due to its weakness

Prices of goods or services in the home country is determined by the help of inflation rate

So the only correct answer here is option A