Which of the following examples definitely illustrates an appreciation of the U.S. dollar?
A) The dollar exchanges for 120 euros and then exchanges for 100 euros.
B) The dollar exchanges for 100 yen and then exchanges for 125 euros.
C) The dollar exchanges for 1 pound and then exchanges for 1.2 pounds.
D) none of the above

Question

Quizplus · Accepted Answer

An appreciation of the U.S. dollar means it gains value compared to another currency. In option C, the dollar initially exchanges for 1 pound and later for 1.2 pounds, indicating it now buys more of the foreign currency, hence it has appreciated.

Which of the Following Examples Definitely Illustrates an Appreciation of the U.S