When the market value of the dollar falls relative to other currencies around the world,we say that the

Question

Quizplus · Accepted Answer

When the market value of the dollar falls relative to other currencies, it means that each dollar can buy fewer units of foreign currency. This indicates a decrease in the value of the dollar, which is known as depreciation. Hence, option B is the correct answer. Option A, appreciation, is the opposite of depreciation which means that the dollar increases in value. Options C and D are not accurate as they do not indicate the change in the value of the dollar.

When the Market Value of the Dollar Falls Relative to Other