The domestic currency value of the foreign currency price of a product is equal to:
a. the reciprocal exchange rate between the domestic and foreign currency.
b. the reciprocal of the foreign currency price of the product.
c. the difference between the foreign currency price of the product and the exchange rate between the domestic and foreign currency.
d. the foreign currency price of the product multiplied by the exchange rate between the domestic and foreign currency.
e. the reciprocal exchange rate between the domestic and foreign currency divided by the foreign currency price of the product.
Question 2
A rise in the value of a currency in relation to another currency in the international market is called:
a. appreciation.
b. depreciation.
c. devaluation.
d. conservation.
e. redenomination.
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