M2 is about four times larger than M1

When the nominal exchange rate falls

A) the domestic currency buys more units of foreign currency and the domestic currency has depreciated. B) the domestic currency buys fewer units of foreign currency and the domestic currency has depreciated. C) the domestic currency buys more units of foreign currency and the domestic currency has appreciated. D) the domestic currency buys fewer units of foreign currency and the domestic currency has appreciated.

When it takes more euros to purchase a dollar, the dollars is said to have:

A) depreciated B) appreciated C) it depends on whether one is using direct or indirect quotations D) it depends on whether one is considering cross rates or exchange rates