Which Statements Are True? If the Exchange Rate Changes from C$1

question 109

Multiple Choice

Which statements are true? If the exchange rate changes from C$1 = US$1.10 to C$1 = US$0.90, then the:
1) Canadian dollar depreciated against the U.S. dollar.
2) Canadian dollar appreciated against the U.S. dollar.
3) U.S. dollar depreciated against the Canadian dollar.
4) U.S. dollar appreciated against the Canadian dollar.

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4
• E) 1 only