Exchange Rates Practice

What is the term used to describe the value of one currency relative to another?

• Currency value

• Exchange rate

• Relative value

• Economic ratio

TVS that are made in Korea are being bought more/becoming popular for American citizens. The value of American currency ​ (a)   . America's Imports ​ (b)   America's Exports ​ (c)  

• depreciates
• appreciates
• decrease.
• increase
• does not change

Oliverland begins importing more cars from America. The value of American currency ​ ​ (a)   . America's Imports ​ (b)   America's Exports ​ (c)  

• appreciates
• increase.
• decrease
• does not change
• depreciates

One dollar in the U.S is equal to 17.64 Pesos. Which currency is weaker?

Un dólar estadounidense equivale a 17,64 pesos. ¿Qué moneda es más débil?

• US Dollar

• Pesos

• Niether

One dollar in the U.S is equal to 298.37 in Sri Lankan Rupees. Which currency is stronger?

• US Dollar

• Sri Lankan Rupee

• Niether

One dollar in the U.S is equal to 0.31 in Kuwaiti Dinars. Which currency is weaker?

• US Dollar

• Kuwaiti Dinar

• Niether

What is a decrease in the value of a currency?

• Appreciation

• Depreciation

• Inflation

• Absolute advantage

What is the increase in the value of a currency?

• Exchange rate

• Recession

• Depreciation

• Appreciation

What does it mean when an economist says a currency is stronger?

• It can be exchanged for more of a lesser foreign currency

• It can be converted to prices in any currency

• There a few things it could buy

• It will buy fewer foreign goods

An appreciation of a country's currency means that for foreigners this country's goods are

• Cheaper

• More expensive