Asked by
Jillian Nicole
on Dec 16, 2024
Verified
For the U.S. ,a drop in the price of foreign exchange means that:
A) fewer U.S.dollars are needed to purchase foreign currency.
B) more U.S.dollars are needed to purchase foreign currency.
C) imports will become more expensive worldwide.
D) exports will become cheaper worldwide.
E) transaction costs in international markets will decrease.
Price of Foreign Exchange
The rate at which one currency can be exchanged for another, often determined by supply and demand in the foreign exchange market.
U.S. Dollar
A major global currency issued by the United States, commonly used in international financial transactions and as a reserve currency.
- Explain the effect of fluctuations in exchange rates on the import and export sectors.
- Comprehend the interaction between foreign exchange rates and global trade activities.
Verified Answer
SA
Learning Objectives
- Explain the effect of fluctuations in exchange rates on the import and export sectors.
- Comprehend the interaction between foreign exchange rates and global trade activities.