Question

the international quidditch tournament is being held in ghana. the currency of ghana is the cedi. if the cedi has depreciated, what does that mean for tourists heading to ghana to watch the tournament? choose 1 answer: a ghanas price level has decreased. b the exchange rate of the cedi has increased. c ghanaian goods will be relatively more expensive to tourists. d the exchange rate of other currencies relative to the cedi has decreased. e it will take less of their currency to buy the cedi.

Explanation:

Currency depreciation means a currency loses value relative to other currencies. When the cedi depreciates, tourists can exchange their currency for more cedis. So, it will take less of their currency to buy the cedi. Price - level is not directly related to currency depreciation in this simple sense. A depreciated cedi means its exchange rate has decreased relative to other currencies, and Ghanaian goods will be relatively cheaper for tourists.

Answer:

E. It will take less of their currency to buy the cedi.