If the spot exchange rate is £1=$1.50 when the market opens, and £1=$1.48 at the end of the day, the pound has appreciated, and the dollar has depreciated.

If the Fed wants to depreciate the U.S. dollar against the British pound, it will ________. A: sell foreign exchange B: decrease the money supply C: sell British pounds D: sell U.S. dollars

An appreciation in the value of the U.S. dollar against the British pound would tend to: A: Discourage the British from buying American goods B: Discourage Americans from buying British goods C: Increase the number of dollars that could be bought with a pound D: Discourage U.S. tourists from traveling to Britain

How many dollars would it cost to buy an Edinburgh Woolen Mill sweater costing 50 British pounds if the exchange rate is 1.25 dollars per one British pound?

‎A weakening of the U.S. dollar with respect to the British pound would likely reduce the U.S. exports to Britain and increase U.S. imports from Britain over time.‏