When fewer units of a foreign currency are required to buy one dollar, the currency is said to have ________ with respect to the dollar.
A) appreciated
B) depreciated
C) consolidated
D) remained fixed

Question

Quizplus · Accepted Answer

Appreciation means the value of a currency increases with respect to another currency. So, when fewer units of a foreign currency are required to buy one dollar, it means the foreign currency has become more valuable compared to the dollar, and therefore, it has appreciated with respect to the dollar.

When Fewer Units of a Foreign Currency Are Required to Buy