Suppose You Could Buy 1,320 South Korea Won or 78

question 54

Multiple Choice

Suppose you could buy 1,320 South Korea won or 78 Pakistan rupees last year for $1. Today, $1 will buy you 1,318 won or 80 rupees. Which one of the following occurred over the past year?

• A) The dollar appreciated against the won.
• B) The dollar depreciated against the rupee.
• C) The dollar appreciated against both the won and the rupee.
• D) The won depreciated against the dollar.
• E) The rupee depreciated against the dollar.

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

National Saving

The total amount of savings in a country, equal to the sum of private and public savings; it represents the difference between a nation's income and consumption.

Public Saving

The difference between tax revenues and government spending, representing the amount of surplus or deficit in the government's budget.

Private Saving

The portion of households' income that is not used for consumption or paying taxes, and is instead saved.