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Which one of the following statements is correct given the following exchange rates?

US $ per 1 foreign unit

Country FRI THU
South Africa 0.1028 0.1023
Thailand 0.0284 0.0286


a) On Thursday, one U.S. dollar was equal to 0.1023 South African rand.
b) On Friday, one Thai baht was equal to $35.21.
c) Both the South African rand and the Thai baht appreciated against the U.S. dollar from Thursday to Friday.
d) The South African rand appreciated from Thursday to Friday against the U.S. dollar.
e) The U.S. dollar depreciated from Thursday to Friday against the Thai baht.

User Bretticus
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1 Answer

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Final answer:

Neither statement regarding the exchange rates can be confirmed without the specific rates for Thursday and Friday. The terms 'appreciated' and 'depreciated' refer to the increase or decrease in currency value in exchange rates over time.

Step-by-step explanation:

To answer the student's question, neither of the provided statements can be evaluated as correct without the specific exchange rates for Thursday and Friday. From the provided information and historical context, we interpret that exchange rates fluctuate over time, and these fluctuations indicate whether a currency has appreciated or depreciated against another. For example, a U.S. dollar that traded for $1.17 Canadian in 1980 and then for $1.39 Canadian in 1986 had appreciated.

Regarding the student's question, statement (a) containing 'one U.S. dollar was equal to 0.1023 South African rand' seems incorrect as it likely represents a typo. The South African rand is historically weaker than the U.S. dollar, so one would expect a larger number of rand per U.S. dollar. As for statement (e), without the actual exchange rates from Thursday and Friday, we cannot confirm if the U.S. dollar depreciated against the Thai baht, although the term 'depreciated' does mean a reduction in value relative to another currency.

User Keavon
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