Home › AP Macroeconomics › Economics › Exchange Rates and International Capital Flows › A currency that strengthens against another is a…
A currency that strengthens against another is also said to:
AAppreciate
BDepreciate
CEvaporate
DConsolidate
Answer & Solution
Correct answer: A. Appreciate
1. Currency movements have two paired vocabularies.
2. Exchange rates fluctuate substantially between countries.
3. A currency that strengthens is said to appreciate.
4. One that weakens is said to depreciate.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Exchange Rates and International Capital Flows'_
Related questions
The dollar losing a quarter of its value between 2002 and 2008 is an example of a currencyA hard peg differs from a soft peg mainly in that the hard peg holds the rate:Arbitrage across borders is only profitable when the same item has prices that are:A country whose central bank never intervenes in currency markets operates which regime?A currency that buys more foreign goods than it did last year has:Alongside size and participants, the overview covers the vocabulary for discussing:The opening overview of foreign exchange markets covers their size and their main:The dollar's 2002 to 2008 loss of value occurred in which markets?