Asked by Aaron Guerra on Jun 03, 2024
Verified
If the exchange rate in terms of units of Currency N per unit of Currency M decreases, which currency strengthened? Explain.
Exchange Rate
The price at which one currency can be exchanged for another currency.
Units
Refers to a measure of quantity or amount in a specified dimension such as length, mass, time, etc., or in the context of economics and finance, the smallest portion of a product or financial instrument.
- Assess the outcomes of exchange rate variability on currency valuation.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
If the number of units of currency N per unit of currency M decreases, it then requires less of currency N to purchase 1 unit of M. Therefore, currency N has strengthened.
Learning Objectives
- Assess the outcomes of exchange rate variability on currency valuation.