Which one of the following is the type of currency whose value may depreciate rapidly or that is difficult to convert into other currencies?

Hard currency

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Soft currency

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Fiat currency

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Alternative currency

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Solution

The correct option is B Soft currency
A soft currency is one whose value may fluctuate rapidly due to that country's uncertain political or economic condition. Forex traders generally avoid it and thus it is difficult to convert into another currencies.

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Similar questions

Q17. Consider the following statements about Currency Wars:

1. A currency war refers to a situation where a number of nations seek to deliberately depreciate the value of their domestic currencies.

2. Currency wars are also known as competitive devaluations.

Which of the above statements are correct?

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