Suppose the Peso-Dollar Foreign Exchange Rate Changes from 50 Pesos

question 195

Multiple Choice

Suppose the peso-dollar foreign exchange rate changes from 50 pesos per dollar to 30 pesos per dollar. Then the peso has _________against the dollar and the dollar has _________against the peso.

• A) depreciated; appreciated
• B) depreciated; depreciated
• C) appreciated; appreciated
• D) appreciated; depreciated

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Definitions:

Variance

A statistical measure that represents the degree to which a set of numbers are spread out, calculated as the average of the squared differences from the Mean.

Sample Size

The number of observations or units that make up a statistical sample.

Genet

Edmond-Charles Genêt, a French diplomat who caused a controversy in 1793 by violating diplomatic protocol in the United States during the French Revolutionary Wars.

Neutrality Pact

An agreement between states to remain neutral, especially in a conflict, neither supporting nor opposing any side involved.