Changes in Exchange Rates Are Usually Expressed in Percentage Terms

question 61

Multiple Choice

Changes in exchange rates are usually expressed in percentage terms. The percentage rate of appreciation for one currency will be close to the rate of depreciation for the other nation whenever:

• A) the change in the rate is very small.
• B) the exchange rates are very different in quantitative terms.
• C) the change in the rate is very large.
• D) one exchange rate is 50% more than the other one at the time of the change.

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