Currency Exchange Rate: French Franc to Dollar | Exam Preparation - Test Prep

French Franc Exchange Rate to Dollar

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Question

If the French franc moves from 8.00 to 7.10 francs to the dollar:

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Explanations

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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.