PSAT Math Multiple-Choice Question 656: Answer and Explanation

Question: 656

Which of these statements accurately represents the data in the table below?

Year	Exchange Rate of Currency X to Currency Y
2000	2.30
2001	15.35
2002	55.42
2003	121.56
2004	237.83

• A. As time goes by, Currency X is becoming relatively more valuable than Currency Y.
• B. As time goes by, Currency Y is becoming relatively more valuable than Currency X.
• C. As time goes by, Currency X is approaching the same value as Currency Y.
• D. No relationship can be determined between Currency X and Currency Y.

Correct Answer: B

Explanation:

(B) As time goes by, the exchange rate increases drastically. In 2000, every unit of Currency Y was equal to 2.3 units of Currency X. However in 2004, 1 unit of Currency Y was equal to 237.83 units of Currency X. That means that Currency Y is becoming more valuable with respect to Currency X because Currency Y is becoming worth more than Currency X. This matches choice (B).