the economics of money, banking, and financial markets

567 #

© 2014 Pearson Canada Inc.#

9. 
   

   When the value of the British pound changes from $1.50 to $1.25, then the pound has
   ____ and the Canadian dollar has ____.
   A) appreciated; appreciated
   B) depreciated; appreciated
   C) appreciated; depreciated
   D) depreciated; depreciated
   Answer: B
   Diff: 1 Type: MC Page Ref: 471 - 472
   Skill: Applied
   Objective List: 19.1 Summarize the basic function performed by the foreign exchange market

   
   


10. 
    

    When the value of the dollar changes from £0.5 to £0.75, then the British pound has
    ____ and the Canadian dollar has ____.
    A) appreciated; appreciated
    B) depreciated; appreciated
    C) appreciated; depreciated
    D) depreciated; depreciated
    Answer: B
    Diff: 1 Type: MC Page Ref: 471 - 472
    Skill: Applied
    Objective List: 19.1 Summarize the basic function performed by the foreign exchange market

    
    


11. 
    

    When the value of the dollar changes from £0.75 to £0.5, then the British pound has
    ____ and the Canadian dollar has ____.
    A) appreciated; appreciated
    B) depreciated; appreciated
    C) appreciated; depreciated
    D) depreciated; depreciated
    Answer: C
    Diff: 1 Type: MC Page Ref: 471 - 472
    Skill: Applied
    Objective List: 19.1 Summarize the basic function performed by the foreign exchange market

    
    


12. 
    

    When the exchange rate for the Mexican peso changes from 9 pesos to the Canadian dollar to
    10 pesos to the Canadian dollar, then the Mexican peso has ____ and the Canadian dollar
    has ____.
    A) appreciated; appreciated
    B) depreciated; appreciated
    C) appreciated; depreciated
    D) depreciated; depreciated
    Answer: B
    Diff: 1 Type: MC Page Ref: 471 - 472
    Skill: Applied
    Objective List: 19.1 Summarize the basic function performed by the foreign exchange market