If the French franc moves from 8.00 to 7.10 francs to the dollar:
Click on the arrows to vote for the correct answer
A. B. C. D. E.Explanation
Since the U.S. dollar now purchases less French francs the U.S. dollar has depreciated; symmetrically, the French franc has appreciated. Each franc now buys
.141 dollars whereas before each franc purchased .125 dollars.