In the context of the foreign exchange market, _____ is defined as a decrease in the value of one currency relative to another currency.

A) depreciation
B) decompensation
C) spot exchange
D) undervaluation

Depreciation

The reduction in the value of an asset over time, particularly due to wear and tear.

Foreign Exchange Market

A global decentralized or over-the-counter market for the trading of currencies, facilitating international trade and investment by enabling currency conversion.

Spot Exchange

Involves the immediate transaction or exchange of financial instruments or commodities for immediate delivery.