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Is It Possible for a Currency to Appreciate Relative to One

Question 55

Multiple Choice

Is it possible for a currency to appreciate relative to one currency, and depreciate relative to another?


A) No, a currency rises or falls against all currencies.
B) No, this could happen only under the gold standard.
C) Yes, but only if all governments agree on the new rates.
D) Yes, this is possible in a world of floating rates.

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