Asked by Ebani Thomas on May 17, 2024
Verified
If the exchange rate in terms of units of currency P per unit of Currency Q increases, which currency weakened? Explain.
Currency P
A placeholder reference for a specific currency being discussed or analyzed, with "P" standing for the particular currency in question.
Exchange Rate
The exchange rate of one currency in terms of another.
Units
Refers to individual items or components of a product, or measures of quantity in mathematics, science, and commerce.
- Study the repercussions of changes in exchange rates on the valuation of different currencies.
Verified Answer
SA
Serrano Art DesignsMay 24, 2024
Final Answer :
If the number of units of currency P per unit of currency Q increases, it then requires more of currency P to purchase 1 unit of Q. Therefore, currency P has weakened.
Learning Objectives
- Study the repercussions of changes in exchange rates on the valuation of different currencies.