Question

If the U.K. pound sterling appreciates relative to the New Zealand dollar, which of the following correctly explains the change in relationship between the two currencies?(1 point)
Responses

The U.K.'s pound will become worthless compared to the New Zealand dollar.
The U.K.'s pound will become worthless compared to the New Zealand dollar.

The U.K.'s pound will maintain the same exchange rate to the New Zealand dollar.
The U.K.'s pound will maintain the same exchange rate to the New Zealand dollar.

The U.K.'s pound will become worth less compared to the New Zealand dollar.
The U.K.'s pound will become worth less compared to the New Zealand dollar.

The U.K.'s pound will become worth more compared to the New Zealand dollar.

Answers

GPT-4o mini
The correct explanation for the appreciation of the U.K. pound sterling relative to the New Zealand dollar is:

**The U.K.'s pound will become worth more compared to the New Zealand dollar.**

When the pound appreciates, it means that you can buy more New Zealand dollars with one pound than before.