Question

If the exchange rate for a foreign currency (stated in dollars) has risen, a dollar will purchase:

Question 9 options:

An undetermined amount of that foreign currency.


A smaller amount of that foreign currency.


An unchanged amount of that foreign currency.


An increased amount of that foreign currency.

Answer 1

Answer:

An increased amount of that foreign currency.

Explanation:

When the exchange rate for a foreign currency rises (stated in dollars), it means that the value of the foreign currency has increased relative to the dollar. In other words, each dollar can now buy more of the foreign currency than before. So, if the exchange rate for a foreign currency rises, a dollar will purchase an increased amount of that foreign currency.