Asked by Kaleigh LaPierre on Apr 25, 2024
The country of Ethandan witnesses a major economic growth in its current financial year as a result of a major breakthrough by the nation's scientists in the field of nanotechnology. The economic growth leads to an increase in the value of the nation's currency relative to that of other nations'. In the context of the foreign exchange market, the increase in the value of Ethandan's currency is referred to as _____.
A) appreciation
B) dollarization
C) spot exchange
D) overvaluation
Appreciation
An increase in the value of one currency relative to another currency.
Nanotechnology
The science and technology of creating and utilizing materials, devices, and systems by manipulating matter at the nanometer scale.
Economic Growth
An increase in the production of goods and services in an economy over a period, often measured as the percent rate increase in real gross domestic product (GDP).
- Recognize the determinants of currency appreciation or depreciation.
Learning Objectives
- Recognize the determinants of currency appreciation or depreciation.
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