Economics 9708 · AS & A Level · 6.4

6.4 — practice question

The diagram illustrates the number of US dollars ($) and Euros (€) that could be exchanged for one pound sterling (£) from 2002 to 2004. What changed in the exchange rate of the $ against the £ and in the $ exchange rate against € over this period?

  • A$ exchange rate against £: appreciated; $ exchange rate against €: appreciated
  • B$ exchange rate against £: appreciated; $ exchange rate against €: depreciated
  • C$ exchange rate against £: depreciated; $ exchange rate against €: appreciated
  • D$ exchange rate against £: depreciated; $ exchange rate against €: depreciated

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