If the Exchange Rate Changes from 75 Cents Per Euro

question 117

Multiple Choice

If the exchange rate changes from 75 cents per euro to $1 per euro, the euro

• A)appreciated, since its value has increased
• B)appreciated, since the price of U.S.dollars has increased
• C)appreciated, making U.S.goods more expensive in Euros
• D)depreciated, since its value has declined
• E)depreciated, since its value has increased

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Definitions:

Legal Tender

U.S. currency that constitutes a valid and legal offer of payment of debt.

Money

Any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

Issued

Issued generally refers to the official distribution or release of items such as documents, currency, or securities by an authoritative entity.

Declared

Stated or made known officially or publicly.