Two bar charts are shown. Chart at left is titled Mexican Pesos per U S Dollar, 2008 showing rates for July (10 pesos), Septembe
r (just above 10 pesos), November (13 pesos). Chart at right is titled British pounds per U S dollar, 2008, showing rates for July (.51 pounds), September (.55 pounds), November (.65 pounds). Data courtesy of X-Rates
The above charts show the exchange rates between the US dollar and two other currencies in 2008. During the months shown, the number of Mexican pesos (MXN) in one dollar rose (from 10.2 to 13.1). The number of British pounds (£) in one dollar also rose (from .51 to .65).
Based on the charts, did the value of the US dollar increase or decrease during these months?
The correct answer to this open question is the following.
Based on the information, the value of the US dollar increased during these months. The US dollar increased its value. For instance, in the case of the Mexican Peso, in July 2008, 10 pesos was the equivalent of 1 dollar. However in November, the same year, you needed 13 pesos to buy 1 dollar. Something similar happened in the case of the British Pound. In July 2008, you needed 0.51 pounds)to buy 1 dollar, but at the end of November, you needed 0.65 pounds, which means .014 more to but the American dollar.
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