Economics · International Economics
In a flexible exchange rate system, a domestic currency tends to depreciate relative to foreign currencies owing to:
- 1Zero inflation rate
- 2High domestic inflation rate✓
- 3Constant domestic inflation rate
- 4Lowering of domestic inflation rate
Correct answer
High domestic inflation rate
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Want more practice questions on International Economics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · International Economics