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Ever wondered why the value of money changes? In this video, we break down two of the most important concepts in Class 12 Macroeconomics (Foreign Exchange Rate chapter): Currency Depreciation and Currency Devaluation. While both mean a fall in the value of domestic currency against a foreign currency, the reasons behind them are completely different! We will cover the definitions, the key differences between floating and fixed exchange rate systems, and how these changes impact a country's exports and imports. Perfect for Class 12 board exam preparation and quick revision! Key Concepts Covered: Depreciation: Fall in the value of domestic currency due to market forces (Demand & Supply) in a flexible exchange rate system. Devaluation: Fall in the value of domestic currency deliberately done by the Government/Central Bank in a fixed exchange rate system. Impact: How a weaker domestic currency makes exports cheaper and imports more expensive. #depreciation_of_currenccy #fallingcurrency #flexible_rate_of_exchange #devaluation_of_currency