Last year the exchange rate between the U.S.dollar and the euro was 0.89.Today the exchange rate is 0.92.We can say that the dollar has ________ against the euro and the euro has ________ against the U.S.dollar.

Question

Quizplus · Accepted Answer

When the exchange rate between two currencies increases, it means that the first currency has appreciated in value relative to the second currency, while the second currency has depreciated in value relative to the first currency. In this case, the exchange rate has gone from 0.89 to 0.92, which means that the U.S. dollar has appreciated against the euro (because you need more euros to buy one dollar), while the euro has depreciated against the U.S. dollar (because you can buy fewer dollars with one euro). Therefore, choice C is correct.

Last Year the Exchange Rate Between the U