The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 25% and the dollar depreciated by 25%.
b. The euro depreciated by 25% and the dollar appreciated by 25%.
c. The euro appreciated by 20% and the dollar depreciated by 25%.
d. The euro appreciated by 25% and the dollar depreciated by 20%.
e. The euro depreciated by 25% and the dollar appreciated by 20%.
.D
You might also like to view...
The Fed's forward guidance in late 2012 through mid-2015 was framed in terms of keeping interest rates low
A) for an extended period. B) at least until a particular date in the future. C) based on outcomes for the unemployment rate and inflation rate. D) until the next Presidential election.
In the base year the price index
A) will be between 1 and 100. B) will always equal 100. C) equals 100 times the cost of the market basket in the base year. D) will equal the year.
All of the following are advantages of a corporation EXCEPT
A) double taxation. B) limited liability. C) ability to raise large sums of financial capital. D) unlimited life.
When Argentina fixed the exchange rate of their peso to the U.S. dollar, one outcome was:
A. Argentinean central bankers regained control of their domestic interest rate. B. Argentinean central bankers were finally able to focus their attention on domestic monetary policy. C. Argentineans began using the U.S. dollar for all of their transactions. D. Argentinean central bankers effectively gave control of their domestic interest rate to the FOMC.