Title: QUIZ: Is a Strong Dollar Better than a Weak Dollar? -- Page One Economics®
Course: Recommended Resources for AP Macro from FRE > Section: Unit 6: Open Economy--International Trade and Finance

Q: What does it mean for a currency to appreciate, or become stronger?
- A currency buys less foreign currency than previously.
- A currency buys more foreign currency than previously.
A: A currency buys more foreign currency than previously.

Q: You are planning a trip to Italy.
- Appreciate
- Depreciate
A: Appreciate

Q: Your factory relies on parts imported from Germany.
- Appreciate
- Depreciate
A: Appreciate

Q: You are a U.S. businessperson whose chief competitor is a French firm.
- Appreciate
- Depreciate
A: Depreciate

Q: A French tourist plans to visit New York City.
- Hurt
- Benefits
A: Hurt

Q: An American firm is investing in German-made machinery.
- Hurt
- Benefits
A: Benefits

Q: From 1977 to 1986, the U.S dollar ________________ relative to the Canadian dollar.

The figure shows the exchange value of on U.S. dollar relative to Canadian dollars. For example, the most recent data on the graph show that at the end of 2024, one U.S. dollar could be used to purchase 1.1 Canadian dollars.

Accessible/full screen version of this graph: https://fred.stlouisfed.org/graph/?g=1G1o9
- appreciated
- depreciated
- remained unchanged
A: appreciated

Q: From 1992 to 2002, the U.S dollar ________________ relative to the Canadian dollar.

The figure shows the exchange value of on U.S. dollar relative to Canadian dollars. For example, the most recent data on the graph show that at the end of 2024, one U.S. dollar could be used to purchase 1.1 Canadian dollars.

Accessible/full screen version of this graph: https://fred.stlouisfed.org/graph/?g=1G1o9
- appreciated
- depreciated
- remained unchanged
A: appreciated

Q: From 2010 to 2011, the U.S dollar ________________ relative to the Canadian dollar.

The figure shows the exchange value of on U.S. dollar relative to Canadian dollars. For example, the most recent data on the graph show that at the end of 2024, one U.S. dollar could be used to purchase 1.1 Canadian dollars.

Accessible/full screen version of this graph: https://fred.stlouisfed.org/graph/?g=1G1o9
- appreciated
- depreciated
- remained unchanged
A: depreciated

Q: When discussing foreign exchange markets, why are the terms “strong” and “weak” sometimes problematic for people?
- In the case of currency, the terms “strong” and “weak” are meaningless.
- Countries always prioritize a strong currency as a recipe for strong economic growth.
- No country wants their currency to be considered “weak” compared with another.
- Strong and weak currencies affect people in different ways even within the same country.
A: Strong and weak currencies affect people in different ways even within the same country.