in 2011, a dollar could be traded for 100 yen and in 2012 a dollar could be traded for 90 yen. between these two years, the dollar has become ________ valuable and so the dollar has ________.
in 2011, a dollar could be traded for 100 yen and in 2012 a dollar could be traded for 90 yen. between these two years, the dollar has become ________ valuable and so the dollar has ________.
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more; appreciated against the yen
To determine the correct answer, let’s analyze the given information and understand the concepts of currency appreciation and depreciation.
Given:
In 2011, 1 dollar could be exchanged for 100 yen.
In 2012, 1 dollar could be exchanged for 90 yen.
When a currency can be exchanged for fewer units of another currency, it has become more valuable or appreciated. Conversely, when a currency can be exchanged for more units of another currency, it has become less valuable or depreciated.
In this case, the dollar could be exchanged for 100 yen in 2011, but only 90 yen in 2012. This means that the dollar has become more valuable relative to the yen because it can now purchase more yen than before.
Therefore, the correct statement is:
C. more; appreciated against the yen
The dollar has become more valuable and has appreciated against the yen between 2011 and 2012.