Appreciation Definition

Definition: It refers to an increase in the value of an asset (such as such as a stock, bond, currency or real estate) occurred  for a number of reasons including increased demand, weakening supply, changes in inflation or interest rates. For example, when the value of a currency rises relative to another, it appreciates. If the value of a currency goes up, then so does consumer spending and business, thus inflation “or the cost of prices” also goes up to keep the economy stable.