Question

If the exchange rate for mexican pesos has changed from 10 pesos to 9 pesos per dollar, _____. the value of the peso has increased the value of the peso has not changed the value of the peso has decreased the changed value of the peso cannot be determined

Answer 1

The correct answer is that the Mexican peso has increased in value. Base on the exchange rate given in the situation, from 10 pesos to 9 pesos per dollar, the Mexican Peso has been appreciated, while the US dollar has been depreciated. Appreciation refers to the increase of stocks or financial assets of a certain company or a country.

Answer 2

If the exchange rate for mexican pesos has changed from 10 pesos to 9 pesos per dollar, The value of the Peso has increased.
This current situation meant in order to obtain the same amount of Peso, US dollar's holders need to sacrifice more amount of US dollar. This indicates either Mexican's economy is improving or United States economy is deteriorating.