If the exchange rate changes from $1.52 = £1.00 to $1.65 = £1.00,then relative to each other,
A) both the dollar and the British pound have appreciated.
B) both the dollar and the British pound have depreciated.
C) the dollar has appreciated and the British pound has depreciated.
D) the dollar has depreciated and the British pound has appreciated.

Question

Quizplus · Accepted Answer

The dollar has depreciated because it now takes more dollars to buy one British pound, while the British pound has appreciated relative to the dollar.

If the Exchange Rate Changes from $1