Explore BrainMass
Share

Explore BrainMass

    Explain the difference between appreciation and depreciation

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Explain the difference between appreciation and depreciation of a nation's currency. How do these changes affect the foreign exchange market?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:44 am ad1c9bdddf
    https://brainmass.com/economics/exchange-rates/explain-difference-appreciation-depreciation-391399

    Solution Preview

    Appreciation of a nation's currency happens when there is an increase in the value that specific currency holds. If the American dollar appreciates relative to a euro (or some other foreign currency), the exchange rate declines. It takes less American dollars to purchase the same amount of that country's foreign ...

    Solution Summary

    This solution explains the difference between appreciation and depreciation of a nation's currency.

    $2.19