If the Exchange Rate Changes from 0

question 108

Multiple Choice

If the exchange rate changes from 0.35 Kuwaiti dinar per dollar to 0.30 Kuwaiti dinar per dollar, what has happened to the dollar?

• A)It has appreciated and so buys more Kuwaiti goods.
• B)It has appreciated and so buys fewer Kuwaiti goods.
• C)It has depreciated and so buys more Kuwaiti goods.
• D)It has depreciated and so buys fewer Kuwaiti goods.

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Definitions:

Universal Motor

An electric motor that can operate on either AC or DC power and is commonly used in portable tools and appliances.

AC

Alternating Current, a type of electrical current where the flow of electric charge periodically reverses direction, commonly used in power supplies.

DC

Direct Current, an electrical current that flows in one direction only, typical in batteries and DC power supplies.

Shaded Pole

A type of single-phase induction motor design that uses a shaded pole for starting torque, commonly found in low-power applications.