Suppose Canada's exchange rate with the euro rises from 1.2 to 1.4. This rise indicates a(n) of the Canadian dollar, which means it takes Canadian dollars to purchase one euro.
A)appreciation; more
B)depreciation; fewer
C)depreciation; more
D)appreciation; fewer

Question

Quizplus · Accepted Answer

The rise in the exchange rate from 1.2 to 1.4 means it now takes more Canadian dollars to purchase one euro, indicating a depreciation of the Canadian dollar.

Suppose Canada's Exchange Rate with the Euro Rises from 1