Question : Which of the following factors can cause a currency depreciation? Select the most appropriate answer.

Option 1: High-interest rates
  

Option 2: Increase in exports
 

Option 3: Political instability

Option 4: Trade surplus

Question : Which of the following factors can lead to a currency depreciation?

Option 1: Increase in exports
   

Option 2: Rise in interest rates
 

Option 3: Political stability

Option 4: Trade surplus

Question : What is the impact of a stronger domestic currency on a country's imports and exports?

Option 1: Increase in imports, decrease in exports
  

Option 2: Decrease in imports, increase in exports
   

Option 3: Increase in imports, increase in exports

Option 4: Decrease in imports, decrease in exports

Question : Which of the following factors can contribute to the depreciation of a country's currency?

Option 1: Low interest rates.
   

Option 2: Weak economic performance.
 

Option 3: Political instability.

Option 4: All of the above.

Question : In the context of foreign exchange rates, what does the term "appreciation" refer to?

Option 1: Increase in the value of a currency
   

Option 2: Decrease in the value of a currency
   

Option 3: Stable value of a currency

Option 4: Convertibility of a currency