1. An appreciation of a country’s currency is likely to:
a. increase both imports and exports
b. decrease both imports and exports
c. increase imports, but decrease exports
d. decrease imports, but increase exports
2. If the exchange rate of the dollar goes from .50 English pounds to .75 pounds, then the dollar has:
a. depreciated relative to the pound and English goods have become less expensive to U.S. consumers.
b. appreciated relative to the pound and English goods have become less expensive to U.S. consumers.
c. appreciated relative to the pound and English goods have become more expensive to U.S. consumers.
d. depreciated relative to the pound and English goods have become more expensive to U.S. consumers
3.The rise in value of one currency relative to another is:
a. a depreciation of the currency.
b. a weakening of the currency.
c. an appreciation of the currency.
d. a debasement of the currency.
✅ Answers
Answerer 1
1) C
2) B
3) C