Appreciation and depreciation
Appreciation and depreciation
An exchange rate states how much foreign currency one unit of domestic currency can buy. If the pound appreciates, each pound buys more foreign currency; if it depreciates, each pound buys less.
Step-by-step lessons on OCR GCSE Economics 4.3.5 Effect of exchange rate changes. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.