If the spot exchange rate goes from 0.80 euro per dollar to 0.60 euro per dollar,the dollar has ___________ against the euro by _________ percent.

Question

Quizplus · Accepted Answer

The dollar has depreciated against the euro by 25.0%.The percentage change in the exchange rate is calculated as follows:Percentage change = (New exchange rate - Old exchange rate) / Old exchange rate * 100In this case, the old exchange rate is 0.80 euro per dollar and the new exchange rate is 0.60 euro per dollar.Percentage change = (0.60 - 0.80) / 0.80 * 100 = -25.0%Therefore, the dollar has depreciated against the euro by 25.0%.

If the Spot Exchange Rate Goes from 0