Question

The U.S. dollar exchange rate increased from ​$0.89 Canadian in June 2009 to ​$0.96 Canadian in June 2010​, and it decreased from 83.8 euro cents in January 2009 to 76.9 euro cents in January 2010. Did the U.S. dollar appreciate or depreciate against the Canadian​ dollar? Did the U.S. dollar appreciate or depreciate against the euro cents​? Between June 2009 and June 2010​, the U.S. dollar​ ______ against the Canadian dollar. Between January 2009 and January 2010​, the U.S. dollar​ ______ against the euro.

Answer 1

Answer:

appreciated; depreciated

Explanation:

The dollar appreciates when there is an increase in the value of the dollar compared to others. In 2009 $1 U.S dollar could buy $0.89 Canadian dollars. Then, in 2010 $1 U.S dollar could buy $0.96 Canadian dollars. Therefore, the U.S dollar appreciated because $1 U.S dollar can buy more Canadian dollars.

The opposite happened with the exchange rate between the U.S dollar and the euro. From 2009 to 2010 the exchange rate decreased from 83.8 to 76.9. Then the U.S dollar depreciated: $1 U.S dollar can buy less euros.