[Shay]

Sometimes I get question incorrect on easy concept can someone tell me if I am correct or wrong

Does Depreciation means Price of Currency goes down… OR Value of Currency goes down

Exact opposite for Appreciation.

A : : $5 == 25 € (euro)

B:: $10 == 25 € (euro)

So, if you go from A to B ==Depreciation for US $ and Appreciation for Euros

So, if you go from B to A== exact opposite

When US $ goes UP, Foreign Currency goes Down, Export down, Import UP, GDP down

When US $ goes down, exact opposite

A:: $1== 25€

B:: $1== 5 €

From A to B == US $ depreciates ?

[See Pee A]

Replace “==” with “buys”. In your first example, $5 buys 25E and then later $10 buys 25E. You spent more $ and got the same E, so the USD depreciated versus Euros.

BEC 86 (08/30/11)
FAR 84 (10/13/11)
REG 88 (11/08/11)
AUD 86 (11/29/11)

Exam prep - Becker self-study

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