The following table shows the number of U.S. dollars required to buy one euro between February 1, 2016, and September 1, 2016. Use this table to answer the following questions.
| Date | U.S. Dollars Required to Buy 1 Euro |
| February 1, 2016 | 1.1092 |
| March 1, 2016 | 1.1134 |
| April 1, 2016 | 1.1346 |
| May 1, 2016 | 1.1312 |
| June 1, 2016 | 1.1232 |
| July 1, 2016 | 1.1055 |
| August 1, 2016 | 1.1207 |
| September 1, 2016 | 1.1218 |
Between February 1, 2016, and September 1, 2016, the U.S. dollar
________ against the euro, and the euro ________ against the U.S.
dollar.
depreciated; appreciated
appreciated; depreciated
neither appreciated nor depreciated; depreciated
depreciated; neither appreciated nor depreciated
appreciated; neither appreciated nor depreciated
Answer:-
Answer:- depreciated; appreciated
Between March 1, 2016, and May 1, 2016, the US Dollar depreciated against the Euro; and the Euro appreciated against the Euro.
As we find by the date provided on March 1, (1.1134) dollars were needed to buy 1 Euro as against 1.1312 dollars needed on 1st May. This means to buy the same no. of the Euro on 1st May more US dollars were needed. Thus the value of US dollars depreciated in the given time period and the Euro appreciated.
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