Suppose That Today 1 British Pound Exchanges for $1

question 126

Multiple Choice

Suppose that today 1 British pound exchanges for $1.60.If next week 1 pound exchanges for $1.70,it is clear that

• A)The pound has depreciated relative to the dollar.
• B)The dollar has appreciated relative to the pound.
• C)Both currencies have appreciated.
• D)The dollar has depreciated relative to the pound.

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Definitions:

International Service

A type of service that is provided across national borders, catering to a global clientele.

Monetary Compensation

Payment given to employees as wages, salaries, bonuses, and commissions in exchange for their work.

Direct Payments

Financial transactions where funds are transferred from one party to another without intermediaries, often used in payroll or benefit disbursement.

Indirect Payments

Payments made on behalf of someone else, often seen in business where employers pay taxes or benefits to governments or insurance companies on behalf of employees.