Question

A change in the Australian dollar value of the British pound from $2.60 to $2.50 means:

Select one:

a. there has been an increase in the pound price of British goods

b. an increase in the dollar price of British goods

c. the pound has appreciated relative to the Australian dollar

d. the Australian dollar has appreciated relative to the pound

Answer 1

Correct option is (d)

Explanation:-As value of pound is decreased from $2.6 to $2.5 ,it means pound has depreciated in relative to Australian dollar because now we can buy only $2.5 from one pound which is less than earlier and therefore we can say Australian dollar has appreciated in relative to pound