Mr. John contacted his banker to ask about the exchange rate USD/GBP. He was informed that the value of the USD changed from 0.5 pounds in thespot quote to 0.75 pounds in 3-month forward market. Then Mr. John concludes thatO a. The pound has depreciated and the dollar has depreciated.Ob.The pound has appreciated and the dollar has appreciated.O C.The pound has appreciated and the dollar has depreciated.d.The pound has depreciated and the dollar has appreciated.

Appreciation means an increase in the value of one currency in relation to another currency.…

Mr. John contacted his banker to ask about the exchange rate USD/GBP. He was informed that the value of the USD changed from 0.5 pounds in the spot quote to 0.75 pounds in 3-month forward market. Then Mr. John concludes that

Mr. John contacted his banker to ask about the exchange rate USD/GBP. He was informed that the value of the USD changed from 0.5 pounds in the spot quote to 0.75 pounds in 3-month forward market. Then Mr. John concludes that

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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