UPSC 2015 CDS I GK Paper

Rise in the price of a commodity means fall in the value of currency and rise in the value of commodity. When the price of a commodity rises, it means that it is the case of inflation. Consequently, it reduces the purchasing power of a currency; and the value of commodity sees a rise. Currencies are moved by many factors, including supply and demand, politics, interest rates, speculation, and economic growth.