1. Depreciation - decrease in the value of a currency in relation to another currency.
2. Floating exchange rate - an exchange rate system in which the value is set by supply and demand for the currency in the free market.
3. Appreciation - what happens to a currency if demand for a country's goods increases.
4. Fixed exchange rate - an exchange rate system in which the central bank fixes the value of its currency to another currency.
5. Managed exchange rate - a hybrid exchange rate system in which the currency value floats within a limited range of values.
What is depreciation?
Depreciation refers to the monetary value of an asset which decreases over time. The decrease may be caused by a number of other factors as well such as unfavorable market conditions etc.
What is the floating exchange rate?
A floating exchange rate is an exchange rate system where a country’s currency price is determined by the foreign exchange market, depending on the relative supply and demand of other currencies.
What is Fixed exchange rate?
A fixed exchange rate is an exchange rate where the currency of one country is linked to the currency of another country or a commonly traded commodity like gold or oil. Nowadays, countries usually link their currencies to their trading partners like the United States dollar.
What is Managed exchange rate?
Under the managed exchange rate system, the exchange rate is predominantly determined in the foreign exchange market by supply of and demand for a currency.
Hence, the answer was given and explained above.
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