A soft currency is one that is expected to _____ in value relative to other currencies.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. reduce.
- Soft currency is an unstable form of currency that is unconvertable, fluctuates erratically, and/or depreciates against other currencies.
- A soft currency is ultra-sensitive to internal and external harmful events, and often fluctuates sharply.
- Even though the Indian rupee has been a soft currency.