Appreciation of a currency means
A)an increase in the amount of goods and services that currency can purchase within its own country.
B)that a country's currency can buy less foreign currency.
C)that a country's currency can buy more foreign currency.
D)a shortage of currency.
E)an increase in the precious metal content in coins.

Question

Quizplus · Accepted Answer

Appreciation of a currency means that a country's currency can buy more foreign currency. This means that the exchange rate of the currency has increased so that it can be exchanged for more units of another currency. This can be beneficial for consumers in the country who want to buy imports or travel abroad, as they can exchange their currency for more foreign currency and therefore get more goods or services for the same amount of money. However, it can be detrimental for exporters in the country, as their goods become more expensive for foreign buyers to purchase.

Appreciation of a Currency Means