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

Question

Quizplus · Accepted Answer

Appreciation of a currency means that it can buy more foreign currency. When a currency appreciates, its exchange rate increases, meaning that more foreign currency can be purchased with each unit of the appreciating currency. This can result in a lower cost of imports and can make traveling abroad less expensive.

Appreciation of a Currency Means