An Exchange Rate Depreciation Is

question 288

Multiple Choice

An exchange rate depreciation is:

• A) an increase in the price of one currency in terms of another currency.
• B) a decrease in the price of a currency in terms of another currency.
• C) the rate at which you can exchange one currency for another.
• D) the rate at which you can exchange the goods and services of one country for the goods and services of another.

---

Definitions:

Treasury Bill

Short-term government securities issued at a discount from the face value and paying no interest, maturing usually in one year or less.

Issue Price

The price at which new securities are offered to the public by the issuer.

Simple Interest

Interest calculated only on the initial principal of a loan or deposit, without compounding.

Annually

Refers to something that happens once every year.