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If the exchange rate between the dollar and the Swiss franc changes from 1.8 to 1.5 francs per dollar, the franc depreciates and the dollar appreciates.

User Eric Snow
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2 Answers

2 votes

Answer: false

Step-by-step explanation:

User Steve Stokes
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2 votes

Answer:

False

Step-by-step explanation:

Exchange rate helps to determine the value of money in the foreign currency. If the exchange rate changes from 1.8 to 1.5 francs per dollar it means that the franc per dollar appreciates, and the dollar depreciates. Now, more dollars can be bought by trading Swiss franc compared to the previous rate. A decrease in exchange rate decreases the value of the dollar compared to the Swiss franc.

User Prism
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