Suppose Canada's exchange rate with the U.S.dollar falls from 1.21 to 1.13.This fall indicates a(n)________ of the Canadian dollar,which means it takes ________ Canadian dollars to purchase one U.S.dollar.
A)appreciation; more
B)appreciation; fewer
C)depreciation; more
D)depreciation; fewer

Question

Quizplus · Accepted Answer

The fall in the exchange rate from 1.21 to 1.13 indicates an appreciation of the Canadian dollar, meaning it now takes fewer Canadian dollars to purchase one U.S. dollar.

Suppose Canada's Exchange Rate with the U