When a magazine reports that there has been a depreciation of the dollar, what does this mean?

a. There has been a decrease in the value of what a dollar can buy of foreign products.

c. The value of the dollar has increased.

b. A portion of United States currency has been used up and will have to be retired from circulation.

d. The Federal Reserve will have to buy government securities in order to replenish the money supply.

Question

History

Lola Anderson

24 May, 15:48

When a magazine reports that there has been a depreciation of the dollar, what does this mean?

a. There has been a decrease in the value of what a dollar can buy of foreign products.

c. The value of the dollar has increased.

b. A portion of United States currency has been used up and will have to be retired from circulation.

d. The Federal Reserve will have to buy government securities in order to replenish the money supply.

+2

Answers (1)

Know the Answer?

Ryan Mcintyre · Answer 1

The answer is letter a. Depreciation happens when value of a currency decreases compared to other currencies. Differences in productivity, economic forecast, productivity, money supply and demand for goods and services are factors to determining how a currency can depreciate