What is an appreciation of a currency?

AA fall in the interest rate set by the bank

BA rise in its value against another currency

CA rise in the general level of prices at home

DA fall in its value against another currency

Explanation

Appreciation means one unit of the local currency now buys more foreign currency than before. Depreciation is the opposite movement.

Derived from ZIMSEC Business Studies Paper 2, November 2021, Q1

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