A depreciating nominal foreign exchange rate may arise from a/an:

Question

Quizplus · Accepted Answer

A depreciating nominal foreign exchange rate means that the domestic currency is worth less relative to the foreign currency. This can be caused by a depreciating real foreign exchange rate, which reflects the relative purchasing power of the two currencies. If the foreign currency can buy more goods and services than the domestic currency, the nominal exchange rate will depreciate.

A Depreciating Nominal Foreign Exchange Rate May Arise from A/an