Foreign Exchange Rate
ICSE · Class 12 · Economics
Most important questions from Foreign Exchange Rate for ICSE Class 12 Economics board exam 2026. MCQs, short answer, and long answer questions with marks.
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Sample Questions
What happens to the domestic currency under appreciation in a flexible exchange rate system?
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Its free market value rises relative to other currencies
Appreciation means a rise in the free market value of domestic currency relative to currencies of other countries.
What is devaluation?
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Government action to decrease the value of domestic currency under fixed exchange rates
Devaluation is an official government action that lowers the value of domestic currency under a fixed exchange rate system.
What is revaluation?
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Government action to appreciate the external value of its currency under fixed exchange rates
Revaluation is the official action by the government to increase the external value of its currency under fixed exchange rates.
Which terms are used when exchange rates are flexible?
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Depreciation and appreciation
Depreciation and appreciation are the terms used under flexible exchange rate systems.
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