Question

Distinguish between depreciation of currency and appreciation of currency.
How are the exports and imports impacted in these situations?
(do not write random words like "skskrkr" i'll report U)​

Answer 1

Answer:

depreciation of currency is the fall in the value of domestic currency in relation to foreign currency.

appreciation of currency is situation when domestic currency appreciates in relation to a foreign currency.

Explanation:

depreciation of currency leads to rise in exports, because foreigners will find out goods cheaper . this will increase demand of our goods and services .on other hand it leads to fall in imports , because, Indians will find imported goods costlier.

this will decrease demand of imported goods and services.

appreciation of currency leads to rise in imports. because,Indians will find imported goods cheaper .this will increase demand of foreign goods and services.on other hand , it leads fall in exports . because, the value of domestic currency appreciates , foreigners will find our goods and services costlier.