The following table shows the number of U.S. dollars required to buy one Mexican peso and the number of U.S. dollars required to buy one Australian dollar between January 1, 2013, and April 1, 2013: Between March 1, 2013, and April 1, 2013, the U.S. dollar ____________ against the Mexican peso, and the U.S. dollar ____________ against the Australian dollar.

Question

The following table shows the number of U.S. dollars required to buy one Mexican peso and the number of U.S. dollars required to buy one Australian dollar between January 1, 2013, and April 1, 2013:  Between March 1, 2013, and April 1, 2013, the U.S. dollar ____________ against the Mexican peso, and the U.S. dollar ____________ against the Australian dollar.

Quizplus · Accepted Answer

The word "against" implies that we are talking about exchange rates, so we need to look at the direction of the exchange rate changes. From the table, we can see that the number of U.S. dollars required to buy one Mexican peso increased from 12.78 to 12.94 between March 1 and April 1, meaning the U.S. dollar depreciated against the Mexican peso. Similarly, the number of U.S. dollars required to buy one Australian dollar also increased from 1.02 to 1.04 between March 1 and April 1, meaning the U.S. dollar depreciated against the Australian dollar. Therefore, the correct answer is D) depreciated; depreciated.

The Following Table Shows the Number of U