The U.S. dollar suddenly changes in value against the euro moving from an exchange rate of 0.8909/€ to $0.8709/€. Thus, the dollar has ________ by ________.
A) appreciated; 2.30%
B) depreciated; 2.30%
C) appreciated; 2.24%
D) depreciated; 2.24%

Question

Quizplus · Accepted Answer

CThe U.S. dollar has appreciated because it now takes fewer dollars to buy a euro (from 0.8909 to 0.8709). The percentage change can be calculated as (0.8909 - 0.8709) / 0.8909 = 0.0224 or 2.24%.

The US Dollar Suddenly Changes in Value Against the Euro Moving