alleryStart learning →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'_
Keep practising Exchange Rates and International Capital Flows
Browse all Exchange Rates and International Capital Flows questions for AP Macroeconomics, or explore more Economics topics.
Related questions
Complete the currency rulesStack the exchange rate termsJudge the assertion and the reasonSort the exchange rate regimesPull the rope to appreciate or depreciateThe 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: