Appreciation of the Gambian dalasi occurs when the exchange rate changes from:
(i) 51 Gambian dalasi per U.S. dollar to 49.57 Gambian dalasi per U.S. dollar.
(ii) 51 Gambian dalasi per U.S. dollar to 52.18 Gambian dalasi per U.S. dollar.
(iii) 0.02 U.S. dollar per Gambian dalasi to 0.04 U.S. dollar per Gambian dalasi.
(iv) 0.02 U.S. dollar per Gambian dalasi to 0.015 U.S. dollar per Gambian dalasi.

Question

Quizplus · Accepted Answer

Appreciation of the Gambian dalasi means it takes fewer dalasi to buy a U.S. dollar or more U.S. dollars can be bought with a single dalasi. In (i), the exchange rate change from 51 to 49.57 dalasi per U.S. dollar indicates appreciation. In (iii), the change from 0.02 to 0.04 U.S. dollar per Gambian dalasi also indicates appreciation, as each dalasi now buys more U.S. dollars.

Appreciation of the Gambian Dalasi Occurs When the Exchange Rate