Is It Possible for a Currency to Appreciate Relative to Another

question 67

Multiple Choice

Is it possible for a currency to appreciate relative to another currency, and depreciate relative to a third?

• A)​No, this is not theoretically possible; a currency rises or falls against all others.
• B)​No, although this could occur under a strict gold standard.
• C)​Yes, this is possible in a world of floating exchange rates.
• D)​Yes, in theory, but it does not happen in reality.

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Definitions:

Learned System

A body of knowledge or behaviors acquired through experience or education rather than being instinctual.

Beliefs

Convictions or acceptances that something exists or is true, especially without proof.

Norms

Societal or group-established standards of behavior.

Perceptual Barrier

A cognitive obstacle that prevents individuals from accurately understanding or interpreting information from others.