Question

When the demand for foreign exchange rises with
no change in its supply, then?

The domestic currency will appreciate against the
foreign currency

The foreign currency will depreciate against the
domestic currency

The domestic currency will deparate against the
foreign currency

The exchange rate will remain constant​

Answer 1

Explanation:

The demand for foreign currency fall and supply rises when its price rises because domestic goods become cheaper. ... When the price of the foreign currency increases, this implies that the domestic currency has increased in terms of the foreign currency.in other words, it means that the domestic currency has depreciated.