The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2

-An increase in the demand for rubles causes the ruble to appreciate.

Question

The figure given below depicts the foreign exchange market for British pounds traded for U.S. dollars.Figure 22.2
 
-An increase in the demand for rubles causes the ruble to appreciate.

Quizplus · Accepted Answer

When demand for a currency, such as the ruble, increases relative to its supply, its value appreciates against other currencies. This means it takes more of the foreign currency to buy the same amount of rubles, indicating an appreciation of the ruble.

The Figure Given Below Depicts the Foreign Exchange Market for British