If the pound-dollar exchange rate changes from £0.60 per dollar to £0.65 per dollar, then the pound has _________against the dollar and the dollar has _________against the pound.
A) depreciated; depreciated
B) depreciated; appreciated
C) appreciated; depreciated
D) appreciated; appreciated

Question

Quizplus · Accepted Answer

The pound has depreciated against the dollar because it now takes more pounds to buy one dollar. The dollar has appreciated against the pound because it can now buy more pounds with one dollar.

If the Pound-Dollar Exchange Rate Changes from £0