Suppose the exchange rate of the U.S. dollar was 1.50 British pounds = $1.00 (U.S.) on Wednesday, and on the following Monday the exchange rate was $0.75 (U.S.) = 1.00 British pound. Which of the following best describes what happened between Wednesday and the following Monday?
A) The U.S. dollar appreciated against the British pound.
B) The British pound appreciated against the U.S. dollar.
C) The U.S. dollar depreciated against the British pound.
D) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

Between Wednesday and the following Monday, the value of the U.S. dollar decreased in terms of how many British pounds one could get for it, indicating that the British pound appreciated against the U.S. dollar. At the same time, this means the U.S. dollar depreciated against the British pound.

Suppose the Exchange Rate of the U