Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = $1.00 U.S.) on Wednesday, and on Monday the exchange rate was $.75 U.S.) = 1.00 British pound. Which of the following best describes what happened between Wednesday and Monday?
A) The U.S. dollar appreciated against the British pound.
B) The British pound appreciated against the U.S. dollar.
C) The U.S. dollar depreciated against the British pound.
D) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

On Wednesday, 1.50 British pounds were equal to $1.00 U.S., while on Monday, 1.00 British pound was worth $.75 U.S. This means that the U.S. dollar became weaker (depreciated) against the British pound, which means that the British pound appreciated against the U.S. dollar. Therefore, both answers B and C are correct.

Suppose the Exchange Rate of the U