Appreciation occurs when:
A) two currencies are pegged to each other.
B) two currencies are equal to each other.
C) that currency increases in value relative to another.
D) that currency decreases in value relative to another.

Question

Quizplus · Accepted Answer

Appreciation of a currency refers to the increase in its value relative to another currency. This means that the currency can buy more of another currency than before, indicating its strengthened position in the foreign exchange market.

Appreciation Occurs When