Currency & Exchange

Choose the best answer for each question.

1. When the value of a country's currency rises, it is said to _____.
a) depreciate
b) appreciate
c) inflate

2. Fluctuations in _____ can affect the price of imported goods.
a) exchange rates
b) inflation
c) profit margins

3. A weaker currency means that exports become _____.
a) more expensive
b) irrelevant
c) cheaper

4. Companies that trade internationally must keep an eye on _____ rates to manage their costs.
a) interest
b) employment
c) exchange

5. When the value of a currency drops, it is said to _____.
a) appreciate
b) depreciate
c) increase

6. _____ is the price at which one currency can be exchanged for another.
a) Exchange rate
b) Interest rate
c) Inflation

7. A strong currency makes imports _____.
a) more expensive
b) harder to find
c) cheaper

8. Businesses that operate in multiple countries often hedge against currency _____ to reduce risk.
a) growth
b) fluctuations
c) profit