economics class.
2007-04-08 18:40:32 · 4 answers · asked by LAROCA 1 in Business & Finance ➔ Other - Business & Finance
Depreciation is when an asset loses value. In an economics class they're probably referring to a depreciating currency. For example, when the US Dollar depreciates in comparison to Euro, it means that $1 will buy you less Euros.
E.g.: A month ago: $1 = 1.33 Euro
Now: $1 = 1.30 Euros
The dollar has depreciated in that instance.
(Take the inverse, you'll be able to see that the Euro has appreciated--opposite of depreciation--and an euro will buy you more dollars.)
2007-04-08 19:53:06 · answer #1 · answered by Sergio 3 · 0⤊ 0⤋
Did this in accounts and economics class, hope i remember correctly.
In accounting is was defined basically as a loss in the value of an asset over a period of time due to normal wear and tear.
In economics, i think it was the loss of value in your capital stock.
2007-04-09 01:54:25 · answer #2 · answered by Anonymous · 1⤊ 0⤋
A decrease in the value of property.
Basically when something loses value over any period of time
2007-04-09 01:44:34 · answer #3 · answered by pimpy 2 · 1⤊ 0⤋
How much less something is worth each year that you have it.
2007-04-09 01:43:18 · answer #4 · answered by PEGGY S 7 · 0⤊ 0⤋