Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Exports become more expensive for foreign buyers
B
Exports become cheaper for foreign buyers
C
Exports remain unchanged
D
Exports increase regardless of currency value
Understanding the Answer
Let's break down why this is correct
Answer
When a country's currency appreciates, it means that its money has become stronger compared to other currencies. This can make its goods and services more expensive for people in other countries. For example, if a U. S. dollar becomes stronger, a toy that costs $10 in the U.
Detailed Explanation
When a country's currency gets stronger, its goods cost more for buyers in other countries. Other options are incorrect because Some might think that a stronger currency makes goods cheaper for others; It's a common belief that currency changes don't affect prices.
Key Concepts
currency appreciation
Topic
Impact of Currency Appreciation
Difficulty
easy level question
Cognitive Level
understand
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