Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar
The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate.
A) appreciated; because there has been no change
B) depreciated; a decrease
C) appreciated; a decrease
D) appreciated; an increase
E) depreciated; an increase
D
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The price at which a good or service is traded on international markets is called the ________ price.
A. world B. market C. universal D. international
One dollar could be exchanged for 55 rupees in 2013 and for 60 rupees in 2014. This implies that the:
A) real exchange rate did not change in 2014. B) dollar appreciated in 2014. C) nominal exchange rate did not change in 2014. D) rupee appreciated in 2014.
The winner of a second-price sealed-bid auction pays an amount equal to ________
A) half of his bid B) the lowest bid C) the second-highest bid D) his valuation of the good
Which of the following is most likely to be asset price inflation?
A. A rise in the current price of assets caused by expectation of higher asset prices in the future B. A rise in the current price of assets caused by an increase in the riskiness of financial assets C. A rise in the current price of assets caused by a shift in people's time preference D. A rise in the price of assets caused by an increase in the underlying productivity of those assets