Question

How would you describe the U.S. dollar if the foreign exchange rate between the U.S. dollar and British pound changed from 1:1 to 1:0.7?
A. The dollar is stable.
B. The dollar has strengthened.
C. The dollar has weakened.

Answer 1

One way to describe the U.S. dollar if the foreign exchange rate between the U.S dollar and British pound changed from 1:1 to 1:07 is the dollar has weakened. The correct answer is C. 

Answer 2

Answer:

Option: C is correct.

( C. The dollar has weakened ).

Step-by-step explanation:

It is given that:

The foreign exchange rate between the U.S. dollar and British pound changed from 1:1 to 1:0.7.

i.e. earlier the U.S. dollar and British Pound were at the same rate.

Now the ratio has changed to 1:0.7

This means that the Dollar has weakened in comparison to the British Pound.

Hence, option: C is correct.

( C. The dollar has weakened )