The pound sterling floats. If its exchange rate changes from $1.68 to $1.75, the pound has:

Question

Quizplus · Accepted Answer

When the exchange rate of a currency increases, it means that currency has become stronger relative to the other currency in the pair. In this case, the pound sterling has strengthened from $1.68 to $1.75, which means that it has appreciated. Depreciation would occur if the exchange rate decreased, while devaluation and revaluation are more specific terms that refer to deliberate actions taken by a government to change the value of their currency. Therefore, the best choice is C, as the pound sterling has appreciated.

The Pound Sterling Floats