The euro was launched in January 1999 with an official initial value against the dollar of $1.16/€. As of January 2011 the currency exchange rate was $1.40/€. Thus, over this time period the euro has ________ against the dollar by a total of ________.

Question

Quizplus · Accepted Answer

To calculate the percentage change we use the formula:
[(new value - old value) / old value] x 100

Using this formula, we get:
[(1.4 - 1.16) / 1.16] x 100 = 20.69

Since the value of the euro has increased, it has appreciated against the dollar. Therefore, option A) and C) are eliminated.

Option D) is incorrect because the percentage change is calculated to be 20.69% which is not close to 100% hence the depreciation percentage is less.

Therefore, the correct answer is B) appreciated by 20.69%.

The Euro Was Launched in January 1999 with an Official