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The fall in value of one currency relative to another is an appreciation of a currency....

The fall in value of one currency relative to another is an appreciation of a currency.

True

False

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Answer #1

False.

Appreciation and depreciation of one currency with respect to another currency are interrelated to each other

If currency appreciates means the value of one currency has increased with respect to another currency and vice versa

So when there is a fall in the one currency with respect to another then there is a depreciation of the currency

For example, if $1US is equal to 75₹ and currently if $1US is equal to 76₹ then here Indian rupees has been depreciated

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