Which of the following examples definitely illustrates a depreciation of the U.S. dollar?
A) The dollar exchanges for 120 euros and then exchanges for 100 euros.
B) The dollar exchanges for 250 yen and then exchanges for 275 euros.
C) The dollar exchanges for 100 euros and then exchanges for 120 yen.
D) The dollar exchanges for 1 pound and then exchanges for 1.2 pounds.

Question

Quizplus · Accepted Answer

In option A, the dollar exchanges for a lower amount of euros compared to the initial exchange, indicating a depreciation of the dollar. Options B, C, and D show an appreciation of the dollar as it gains more yen, euros, and pounds respectively.

Which of the Following Examples Definitely Illustrates a Depreciation of the U.S