The fall in value of one currency relative to another is ?
Correct answer: A. a depreciation of a currency
- A. a depreciation of a currency
- B. a strengthening of a currency
- C. a floating of a currency
- D. an appreciation of a currency
Explanation
A fall in one currency’s value relative to another is depreciation. Appreciation or strengthening means the currency has gained value, while floating describes the exchange-rate system rather than the change itself.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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