Final answer:
The exchange rate relation between Swiss francs and Canadian dollars can be described by the linear function y = (4/3)x. Exchange rates reflect how currency values fluctuate and appreciate or depreciate over time.
Step-by-step explanation:
The exchange rate between Swiss francs and Canadian dollars can be described using a linear function to represent the relationship. Given that 3 Swiss francs can be exchanged for 4 Canadian dollars, we would define this linear function with the equation y = (4/3)x, where x is the amount in Swiss francs and y is the equivalent amount in Canadian dollars.
Understanding exchange rates is crucial for converting between currencies. Just like the historical data showing how the exchange rate between the U.S. dollar and the Canadian dollar has fluctuated since 1980, indicating periods of appreciation and depreciation. These terms refer to the increase (appreciation) or decrease (depreciation) in the value of a currency relative to another.
It is important to note that when one currency appreciates, the other necessarily depreciates; it's a reciprocal relationship. An appreciation of the U.S. dollar against the Canadian dollar can also be seen as the depreciation of the Canadian dollar against the U.S. dollar, indicating that more Canadian dollars are needed to buy the same amount of U.S. dollars.