Digital PSAT Math Practice Question 106: Answer and Explanation
Question: 106
Year | Exchange Rate of Currency X to Currency Y |
2000 | 2.30 |
2001 | 15.35 |
2002 | 55.42 |
2003 | 121.56 |
2004 | 237.83 |
Which of these statements accurately represents the data in the table above?
- 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).
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