Question

Regarding a purchase from a foreign vendor, when the exchange rate for a foreign currency increases between a purchase and a payment - a. the difference between the two rates is debited to the linked

Answer 1

An increase in the exchange rate means that a foreign currency has strengthened or appreciated relative to another currency. This results in the purchase of foreign goods and services becoming cheaper for US buyers.

Step-by-step explanation:

An increase in the exchange rate means that a foreign currency has strengthened or appreciated relative to another currency. For example, if the exchange rate for US dollars and euros increases, it means that the US dollar has become stronger and can buy more euros. This would result in the purchase of foreign goods and services becoming cheaper for US buyers.