Santa Ana Company purchased merchandise on account from a company in England.The price was 1,000 pounds.At the time of the purchase,the exchange rate for a pound was $1.52.At the time Santa Ana Company paid for the merchandise,the exchange rate for a pound was $1.55.What can we say about the pound relative to the U.S.dollar?

Question

Quizplus · Accepted Answer

The pound strengthened and the U.S. dollar weakened over time, as the exchange rate increased from $1.52 to $1.55 per pound. This means that it took more U.S. dollars to buy one pound, indicating a relative increase in the value of the pound.

Santa Ana Company Purchased Merchandise on Account from a Company