Option 1: (A) - (III), (B) - (IV), (C) - (I), (D) - (II) -> Let's match each term correctly: (A) Exchange Rate - (III) External value of the domestic currency: Exchange rate represents the value of one currency in terms of another, i.e., the external value. (B) Gold standard system - (IV) An old variant of fixed exchange rate: Under the gold standard (used historically), currencies were pegged to gold, creating a fixed exchange rate system. (C) Par rate of exchange - (I) Supply of foreign exchange = Demand of foreign currency: Par rate is the equilibrium exchange rate where supply equals demand. (D) Currency Depreciation - (II) Domestic currency loses its value in relation to a foreign currency: Depreciation means the domestic currency becomes weaker relative to foreign currencies. -> correct