Question

A US dollar appreciation against the British Pound means ___________________________ A US dollar devaluation against the...

A US dollar appreciation against the British Pound means ___________________________

A US dollar devaluation against the British Pound means ___________________________

Selected Answer:

the market value of the US dollar rises in terms of the British Pound / the market value of the US dollar decreases in terms of the British Pound (not this one )

Answers:

the official price of the US dollar rises in terms of the British Pound / the official price (par value) of the British Pound in terms of US dollars increases

the market value of the US dollar rises in terms of the British Pound / the market value of the US dollar decreases in terms of the British Pound    (not this one)

the market value of the US dollar decreases in terms of the British Pound / the official price (par value) of the British Pound in terms of US dollars decreases

the market value of the US dollar rises in terms of the British Pound / the official price (par value) of the British Pound in terms of US dollars increases

Homework Answers

Answer #1

4) The market value of the US dollar rises in terms of the British Pound/ the official price ( par value) of the British Pound in terms of US dollars increases.

The Dollar appreciation refers that the value of the US dollar currency increased against British Pound due to free market economy demand and supply.

The Dollar Devaluation refers to officially reducing the US Dollar currency against British by the Federal Reserve of USA.The value is reduced by the central bank, not free market force demand and supply.As a result, the value of the British Pound increased aginst USDollar.

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