Author Question: If the exchange rate between the Canadian dollar (C) and the U.S. dollar () changes from 1C = 1.30 ... (Read 34 times)

yoooooman · **on:** Jun 30, 2018

If the exchange rate between the Canadian dollar (C) and the U.S. dollar () changes from 1C = 1.30 to 1C = 1.05 we can say that:
a. the U.S. dollar has depreciated with respect to all the currencies across the world.
b. the Canadian dollar has appreciated with respect to the U.S. dollar.
c. the U.S. dollar has appreciated with respect to the Canadian dollar.
d. the Canadian dollar has depreciated with respect to all the currencies across the world.
e. the Canadian dollar has appreciated with respect to all the currencies across the world.

Question 2

On a given day, the exchange rate for one U.S. dollar is 1.2 Canadian dollars and 0.5 British pounds. Exactly six months later, the exchange rate for one U.S. dollar is 1.1 Canadian dollars and 0.7 British pound. From the information given, we can say that:
a. the dollar has appreciated relative to Canadian dollars and depreciated relative to British pounds.
b. the dollar has appreciated relative to British pounds and depreciated relative to Canadian dollars.
c. the dollar has appreciated relative to both British pounds and Canadian dollars.
d. the dollar has depreciated relative to both British pounds and Canadian dollars.
e. there is no change in the relative value of the U.S. dollar.