the dinar devalues against the U.S. dollar by 45%, the U.S. dollar will appreciate against the dinar by
A) 45%
B) 82%
C) 55%
D) 32%

Question

Quizplus · Accepted Answer

When the dinar devalues against the U.S. dollar by 45%, it means that the value of the dinar has decreased by 45% in relation to the U.S. dollar. This also means that the U.S. dollar has appreciated against the dinar by the same percentage (45%). However, in order to calculate the new exchange rate between the two currencies, we need to use the percentage change formula: (New rate - Old rate) / Old rate x 100%. Based on this formula, we can calculate that the U.S. dollar will appreciate against the dinar by approximately 82%.

The Dinar Devalues Against the U