If the exchange rate falls from 120 yen per dollar to 100 yen per dollar, the dollar has ________ and the yen has ________.
A) depreciated; appreciated
B) appreciated; depreciated
C) depreciated; depreciated
D) appreciated; appreciated

Question

Quizplus · Accepted Answer

The dollar has depreciated because it now buys fewer yen, and the yen has appreciated because it now buys more dollars.

If the Exchange Rate Falls from 120 Yen Per Dollar