Assume That the Exchange Rate Between the Euro and the Pound

question 122

Multiple Choice

Assume that the exchange rate between the euro and the pound has changed from 2 euros per pound to 3 euros per pound.We can say that the

• A) euro appreciated against the pound.
• B) euro depreciated against the pound.
• C) the euro has been officially revalued.
• D) both the euro and the pound have appreciated.

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Definitions:

Tariff

A tax imposed on imported goods, usually to protect domestic businesses and market from foreign competition.

Liberalization

The process of reducing government regulations and restrictions in an economy to encourage more business activities and investments.

GATT

General Agreement on Tariffs and Trade, a legal agreement minimizing barriers to international trade.

Tariff

A tax imposed on imported goods and services, typically to restrict trade, increase government revenue, or protect domestic industries.