If the Exchange Rate Changes from

question 91

Multiple Choice

If the exchange rate changes from .50 pounds per dollar to .75 pounds per dollar, what has happened to the dollar?

• A) It has appreciated and so buys more British goods.
• B) It has appreciated and so buys fewer British goods.
• C) It has depreciated and so buys more British goods.
• D) It has depreciated and so buys fewer British goods.

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Definitions:

Table Saws

Tools with a fixed blade and a flat surface, used for cutting large pieces of wood with precision.

Markdown Rate

The percentage decrease from the original price of an item to its new sale price.

Raisins

Dried grapes often used in cooking and baking or eaten as a snack.

Mark-up

The gap between the acquisition cost of a product or service and the price at which it's sold, calculated as a fraction of the initial cost.