Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as a depreciation of the U.S. dollar. an appreciation of the U.S. dollar. a monetizing of the U.S. dollar. a devaluation of the U.S. dollar.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter4: Exchange Rate Determination
Section: Chapter Questions
Problem 11QA
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Under a flexible exchange rate system, an increase in the value of the U.S. dollar in terms of other currencies is referred to as

  1. a depreciation of the U.S. dollar.
  2. an appreciation of the U.S. dollar.
  3. a monetizing of the U.S. dollar.
  4. a devaluation of the U.S. dollar.
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