Question : When value of domestic currency is tied to the value of another currency, it is known as 
 

Option 1: Pegging
 

Option 2: Parity value
 

Option 3: Speculative
 

Option 4: None of the above.
 

Question : What do you mean by Parity value of currency

Option 1: Value of currency fixed in terms of another currency
 

Option 2: Value of currency fixed in terms of gold
 

Option 3: Value of currency in terms of USD

Option 4: None

Question : When domestic currency gains value in relation to a foreign currency in the international market, it is termed as a situation of:

Option 1: Currency Depreciation
 

Option 2: Currency Appreciation
 

Option 3: Currency Devaluation

Option 4: None

Question : The real exchange rate is a measure of:

Option 1: Purchasing power of one currency relative to another.
 

Option 2: Exchange rate fluctuations in the short term.
 

Option 3: The value of a currency in terms of gold.

Option 4: Speculative movements in the foreign exchange market.

Question : It refers to increases in the value of domestic currency in terms of foreign currency.
 

Option 1: Depreciation
 

Option 2: Appreciation
 

Option 3: Revaluation
 

Option 4: Devaluation