When the Value of the British Pound Changes from $1

question 61

Multiple Choice

When the value of the British pound changes from $1.25 to $1.50, the pound has ________ and the Canadian dollar has ________.

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

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security that represents ownership of a portion of a company, giving the holder voting rights.

Long-term Debt

Borrowed money that a company or individual must repay over a period longer than one year.

Equipment Trade

The act of exchanging one piece of business equipment for another, often to upgrade or replace assets.

Depreciation Expense

The portion of the cost of a fixed asset deducted as an expense over its useful life, reflecting the asset's consumption or wear and tear.