If one nation's currency strengthens against a foreign currency, the other nation's currency must _____ against the domestic currency.
A) strengthen
B) equalize
C) weaken
D) appreciate

Question

Quizplus · Accepted Answer

If one nation's currency strengthens against a foreign currency, it means that it is now more valuable than the foreign currency. Therefore, the other nation's currency has to weaken against the domestic currency to maintain competitiveness in trade.

If One Nation's Currency Strengthens Against a Foreign Currency, the Other