An appreciation is an increase in the value of the currency whereas a depreciation is a loss in the value of the currency.

Question

Quizplus · Accepted Answer

This statement is correct. Appreciation refers to an increase in the value of a currency with respect to another currency or a basket of currencies, while depreciation refers to a decrease in the value of a currency. These changes in value can be the result of various factors, such as changes in interest rates, inflation, political and economic developments, and market forces.

An Appreciation Is an Increase in the Value of the Currency