The Impact of Currency Appreciation & Depreciation on Inflation

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The continuous rise in the price of goods and services is known as _____.

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1. How does currency appreciation affect domestic inflation?

2. By reducing interest rates, a government might try to _____.

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About This Quiz & Worksheet

Easily test your knowledge of currency appreciation and inflation with this multiple-choice quiz and worksheet. Why a government might reduce interest rates is one of several topics covered on the quiz.

Quiz & Worksheet Goals

You'll be tested on the following:

  • The ongoing increase in the price of goods and services
  • Currency appreciation and domestic inflation
  • A government reducing interest rates
  • Depreciation of the local currency
  • A government mitigating inflation caused by currency depreciation

Skills Practiced

  • Making connections - use what you've learned to make connections between currency appreciation and domestic inflation
  • Information recall - access the knowledge you've gained about what happens with inflation when the local currency depreciates
  • Knowledge application - use your knowledge to answer a question about what a government can do to mitigate inflation caused by currency depreciation

Additional Learning

Continue your studies on this subject with the lesson titled The Impact of Currency Appreciation & Depreciation on Inflation. Below is a brief look at some of the topics covered:

  • Appreciation versus deprecation
  • The currency exchange and importing goods and materials
  • Why companies have to cut costs and increase productivity
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