Final answer:
The statement is false because a growing money supply usually leads to inflation and a decrease in currency value. Currency appreciation is more complex, involving expectations, demand and supply, and other economic factors.
Step-by-step explanation:
The statement that if Great Britain's money supply grows faster than Mexico's, the value of the British pound should rise relative to the value of the peso is false. Typically, when a country's money supply grows rapidly, it can lead to inflation, which may reduce the currency's value.
Forex market dynamics involve demand and supply for currencies, and other factors such as interest rates, economic growth, and political stability also influence exchange rates.
An increase in demand for a currency due to positive expectations, or a decrease in supply due to decreased willingness to sell, can lead to currency appreciation, as depicted in the various figures showing how future expectations can affect the Mexican Peso exchange rate.