The following table shows a selection of exchange rate indices (effective exchange rates) for the years 2010 to 2016, based on 2010 = 100.

	2010	2011	2012	2013	2014	2015	2016
Australian $	100.0	107.10	109.32	103.23	97.87	88.75	89.35
US $	100.0	95.48	98.24	99.36	102.33	115.24	120.33
Japanese yen	100.0	105.72	107.21	87.09	81.50	76.57	88.30
Sterling	100.0	99.37	103.17	101.06	108.09	114.10	102.73
Euro	100.0	100.49	95.83	100.10	102.47	95.10	98.48
Chinese yuan	100.0	100.19	105.92	111.87	114.71	125.65	119.91

               

(a) Explain what is meant by an exchange rate index or an effective exchange rate.

(b) Calculate the annual rate of appreciation or depreciation for each currency for each year from 2010.

(c) Calculate the percentage appreciation or depreciation of each currency when comparing 2016 with 2010.