When the dollar "cost" of a unit of foreign currency falls, the dollar is _____ against the foreign currency.
A) depreciating
B) appreciating
C) equalizing
D) holding its own

Question

Quizplus · Accepted Answer

When the dollar cost of a unit of foreign currency falls, it means that fewer dollars are needed to buy the foreign currency, indicating that the value of the dollar is increasing relative to the foreign currency. This is referred to as the dollar appreciating against the foreign currency.

When the Dollar "Cost" of a Unit of Foreign Currency