Concept:Exchange rate changes use specific terms for a rise or fall in a currency’s value.
Explanation:The price of the domestic currency in terms of a foreign currency is the exchange rate.
It shows how much foreign currency can be obtained for one unit of the domestic currency.
When this price decreases, the domestic currency buys less foreign currency than before.
This fall in value is called depreciation in a floating exchange rate system.
If the price increases, that would be an appreciation of the domestic currency.
So the correct pair is “decrease” followed by “depreciation”.
Answer:Option C. Decrease, depreciation.