When the value of the British pound changes from $1.50 to $1.25, then the pound has ________ and the Canadian dollar has ________.

Question

Quizplus · Accepted Answer

When the value of the British pound changes from $1.50 to $1.25, it means that the pound has decreased in value compared to the US dollar. This is a depreciation of the pound. On the other hand, there is no information given about the Canadian dollar, so we cannot conclude whether it appreciated or depreciated. Therefore, the answer is B, which states that the pound has depreciated and the Canadian dollar could have either appreciated or depreciated, but we cannot determine based on the given information.

When the Value of the British Pound Changes from $1