If the number of units of a foreign currency that can be obtained for one dollar (the price of a dollar in that currency or indirect quotation) rises, the dollar is said to ________ relative to the currency, and the currency is said to ________. Thus, appreciation means a decline in the ________ quotation.

Question

Quizplus · Accepted Answer

When the number of units of a foreign currency that can be obtained for one dollar rises, it means the dollar is appreciating (becoming more valuable) relative to that foreign currency, which in turn is depreciating (becoming less valuable). Appreciation of a currency means a decline in the direct quotation of that currency, not the indirect quotation.

If the Number of Units of a Foreign Currency That