Suppose the peso-dollar foreign exchange rate changes from 50 pesos per dollar to 30 pesos per dollar. Then the peso has ________ against the dollar and the dollar has ________ against the peso.
A) appreciated; depreciated
B) appreciated; appreciated
C) depreciated; appreciated
D) depreciated; depreciated

Question

Quizplus · Accepted Answer

When the peso-dollar exchange rate changes from 50 pesos per dollar to 30 pesos per dollar, it means fewer pesos are needed to buy a dollar, indicating the peso has appreciated in value. Conversely, because more dollars are needed to buy the same amount of pesos, the dollar has depreciated against the peso.

Suppose the Peso-Dollar Foreign Exchange Rate Changes from 50 Pesos