If a country's currency is depreciating, it means that:

CA Foundation · Business Economics · MTP · January 2025
If a country's currency is depreciating, it means that:
(A) A. The domestic currency is increasing in value relative to foreign currencies.
(B) B. The country's exports will become more expensive to foreign buyers.
(C) C. The country's exports become cheaper for foreign buyers, potentially boosting trade.
(D) D. The central bank is actively increasing the supply of money.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. The country's exports become cheaper for foreign buyers, potentially boosting trade.

Topics: International Trade

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