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Q: What is the effect of depreciation of the domestic currency?
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Differences between currency depreciation and apreciation?

Devaluation and depreciation are often interchangeable, although there is a subtle difference. Devaluation refers to changing the value of a currency in a fixed exchange rate, while depreciation is decreasing the value in a floating exchange rate.


Can you give me a sentence with the word depreciation?

Interest rates also have to be held down to secure a currency depreciation.


A depreciation in the external value of the currency is likely to...?

increase inflation


What are the effect of dollarization in developing country?

since dollarization replaces country's currency, it will lead to depreciation of local currency. Investors wont find it worth investing in a country with falling local currency as it will fetch them no good return. Also, it will affect our export. Import would be expensive.


What effect does depreciation expense have on net income and cash flow?

Depreciation Expense reduces net income and has no effect on cash flow.


What is GDP minus capital depreciation?

Net Domestic Product NDP


Definition of per net state domestic product in India?

Net state Domestic Product = Gross Domestic Product(GDP) - Depreciation


What is the difference between gross private domestic investment and net private domestic investment?

is net invesment = gross investment - depreciation


What determines the foreign currency value against Indian currency?

The foreign currency against domestic currency is the buying and selling


Where does accumulated depreciation go on a multiple step income statement?

accumulated depreciation is a part of financial statement while its counteract or effect is recorded into income statement as a Depreciation Expense.


What is meaning of depreciation and devaluation and appreciation and revaluation?

depreciation is due to international economic pressure i.e the supply and demand of a currrency whilst devaluation is done by the government of a certain country , when it decides to set its currency or give its currency a certain value against others.


Why is a depreciation of a country currency not necessarily a bad thing?

It really doesn't show any good signs.