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)appreciation; fewer
C)depreciation; more
D)depreciation; fewer

Question

Quizplus · Accepted Answer

When the exchange rate from Canadian dollars to euros increases from 1.2 to 1.4, it means that the value of the Canadian dollar has decreased relative to the euro. Therefore, it 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