Answer:
C. The exchange rate changes to $1 of country A's money for $20 of country B's money
Explanation:
The strength of a country's currency has a positive relationship to its state of the economy. When the economy is doing well, its currency tends to gain strength in the exchange markets. Globally developed economies have stronger currencies than developing countries.
If country B's economy grows stronger, its currency will strengthen. The exchange rate will be a higher value than before. It be will be exchanged by fewer of country's A currency than it did previously.
To make country B's economy grow stronger the exchange rate changes to $1 of country A's money for $20 of country B's Money. Thus, the correct answer is C.
Economy refers to stability in the financial position of the country by optimum utilization of resources in consumption and production of goods to satisfy the customer needs and desires.
The exchange rate refers to the value of the currency of one nation to another. If the economy is fixed means the currency has a strong value in the exchange market. When country B's economy grows faster, its currency will strengthen automatically.
Therefore, option C exchange rate changes $1 of a country A money for $20 of country B's Money is the correct answer.
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