Which of the following statements is equivalent to an appreciation of the dollar relative to the euro?
A) The dollar buys fewer euros now.
B) The euro buys fewer dollars now.
C) The dollar costs less.
D) The euro buys more dollars now.

Question

Quizplus · Accepted Answer

An appreciation of the dollar relative to the euro means that the dollar has become stronger and can buy more euros than before. Therefore, the equivalent statement to this would be that the euro now buys fewer dollars as the dollar has increased in value. Thus, the correct choice is B.

Which of the Following Statements Is Equivalent to an Appreciation