You have obtained the following spot rates:

From the above information,the U.S.dollar has ________ against the Japanese yen and it has ______ against the Mexican peso.

Question

You have obtained the following spot rates:

From the above information,the U.S.dollar has ________ against the Japanese yen and it has ______ against the Mexican peso.

Quizplus · Accepted Answer

We do not have enough information to determine whether the U.S. dollar has appreciated or depreciated against the Japanese yen as no previous spot rate is given as a benchmark. However, we can determine that the U.S. dollar has depreciated against the Mexican peso because the spot rate has increased (since more U.S. dollars are now required to purchase one Mexican peso). Therefore, the correct answer is C.

You Have Obtained the Following Spot Rates