In general, the percentage of appreciation of one nation's currency is equal to:
A) its rate of growth of real GDP.
B) its purchasing power.
C) its population growth.
D) the percentage of depreciation of the foreign nation's currency.

Question

Quizplus · Accepted Answer

The percentage of appreciation of one nation's currency is generally equal to the percentage of depreciation of the foreign nation's currency. This is because currency values are relative; when one currency appreciates in value, it means it can buy more of another currency, which in turn has depreciated in value relative to the first currency.

In General, the Percentage of Appreciation of One Nation's Currency