How would you describe the us dollar if the forein exchange rate between the us dollar and british pound changed from 1:1 to 1:0

Question

3 years ago

13

.7?

2 answers:

Dimas [21] · Answer 1 · 2022-07-23T10:24:41+03:00

Dimas [21]3 years ago

7 0

The value of the US dollar would be lower as it is worth less than 1 british pound.

nika2105 [10] · Answer 2 · 2022-07-23T12:30:55+03:00

Answer:

The first ratio is

$1USD : 1 \£$

That is, 1 US Dollar equals 1 British Pound.

Then, the last ratio is

$1USD:0.7\£$

Which means that for one US Dollar you would get 70 cents of a British Pound.

As you can see, the second represents a devaluation of the US Dollar against the British Pounds. It has a lower value.