Which of the following statements is most correct?
A) If the U.S. $ depreciates relative to the yen, then it is likely also depreciating relative to the euro.
B) If the U.S. $ is appreciating relative to the euro, the euro is likely depreciating relative to the yen.
C) If the U.S. $ is depreciating relative to the euro it is likely depreciating relative to all currencies.
D) If the U.S. $ is appreciating relative to the yen, the yen is depreciating relative to the U.S. $.

Question

Quizplus · Accepted Answer

Currency appreciation and depreciation are reciprocal. If the U.S. dollar is appreciating relative to the yen, it means the value of the yen is falling in comparison to the U.S. dollar.

Which of the Following Statements Is Most Correct