Question : When a country's currency appreciates, it means that:

Option 1:  Its value increases relative to other currencies.
  

Option 2: Its value decreases relative to other currencies.   

Option 3: Its value remains constant.

Option 4: None of the above.

Question : When a country's currency is undervalued, it means that:

Option 1: Its value increases relative to other currencies
   

Option 2: Its value decreases relative to other currencies
 

Option 3: Its value remains the same as other currencies

Option 4: Its value cannot be determined accurately

Question : When a country's currency appreciates, it means that:

Option 1: Its value decreases relative to other currencies
  

Option 2: Its value increases relative to other currencies
 

Option 3: It remains stable against other currencies

Option 4: It has no impact on other currencies

Question : The currency of one country is said to appreciate when its value ________ in relation to another currency.

Option 1: increases
 

Option 2: decreases
 

Option 3: stabilizes

Option 4: remains constant

Question : What is the term used to describe a situation where a country's currency is not freely tradable or convertible into other currencies?

Option 1: Convertible currency
   

Option 2: Non-convertible currency
  

Option 3: Reserve currency

Option 4: Intervention currency