A ............ in the price of the domestic currency in terms of a foreign currency is referred to as .............

A.

Decrease, appreciation

B.

Increase, de-appreciation

C.

Decrease, depreciation

D.

Increase, consolidation

Correct answer is C

Currency depreciation is a fall in the value of a currency in a floating exchange rate system. Therefore, a decrease in the price of the domestic currency in terms of a foreign currency is referred to as depreciation.