When the $/£ exchange rate rises the pound _____ and when the $/£ rates falls the pound ________?
Correct answer: C. appreciates, depreciates
- A. depreciates, appreciates
- B. revalues, devalues
- C. appreciates, depreciates
- D. becomes more expensive becomes cheaper
Explanation
A rise in the dollar-per-pound rate means one pound buys more dollars, so the pound appreciates. A fall means it buys fewer dollars, so it depreciates.
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