On a Given Day, the Exchange Rate for One U

question 30

Multiple Choice

On a given day, the exchange rate for one U.S. dollar is 1.2 Canadian dollars and 0.5 British pounds. Exactly six months later, the exchange rate for one U.S. dollar is 1.1 Canadian dollars and 0.7 British pound. From the information given, we can say that:

• A) the dollar has appreciated relative to Canadian dollars and depreciated relative to British pounds.
• B) the dollar has appreciated relative to British pounds and depreciated relative to Canadian dollars.
• C) the dollar has appreciated relative to both British pounds and Canadian dollars.
• D) the dollar has depreciated relative to both British pounds and Canadian dollars.
• E) there is no change in the relative value of the U.S. dollar.

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Definitions:

Representative Democracy

A form of democracy in which citizens elect officials to represent their interests and make governmental decisions.

Small Interest Group

A group of individuals or organizations that, despite its small size, seeks to influence public policy or corporate decisions based on specific common interests or concerns.

Inefficient Government Program

A public initiative that fails to achieve desired outcomes effectively, often due to misallocation of resources or administrative issues.

Logrolling

The practice of exchanging favors, especially in politics, by reciprocal voting for each other's proposed legislation.