__________ means a drop in the foreign exchange value of a floating currency.

Question

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Depreciation refers to a decrease in the value of a currency in relation to other currencies in the foreign exchange market. It is a natural process in a floating exchange rate system, where the value of a currency is determined by market forces of supply and demand. When demand for a currency decreases relative to its supply, its value decreases as well, leading to depreciation. This can happen due to a variety of reasons, including lower interest rates, weaker economic fundamentals, and unfavorable political developments.

__________ Means a Drop in the Foreign Exchange Value of a Floating