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- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Explanation
A decline in the value of a currency relative to another is known as depreciation. Conversely, an increase in value is called appreciation. Floating refers to a currency whose value is determined by the market, while strengthening indicates an increase in value.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
- 4.What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
- 5.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?
- 6.What term describes the value of one nation's currency expressed in the currency of another country?
- 7.Which of the following distinguishes forward contracts from futures contracts?
- 8.When speculators wager against the market trends that drive currency exchange rate changes, thereby reducing these fluctuations, currency speculation is considered to be _____?
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