Asked by
Cristin Payne
on Dec 19, 2024Verified
Which of the following would tend to raise the value of the U.S. dollar in foreign exchange markets?
A) a rise in U.S. interest rates
B) an easy monetary policy in the United States
C) a contractionary fiscal policy in the United States
D) an increase in the U.S. demand for foreign oil
Foreign Exchange Markets
Global markets where currencies are traded, allowing for the conversion of one currency into another for trading and investment purposes.
U.S. Interest Rates
The rates at which interest is paid by borrowers for the use of money that they borrow from lenders, specifically in the United States.
Monetary Policy
Actions by a central bank to control the money supply and interest rates in an economy, aiming to influence economic activity, inflation, and employment.
- Evaluate the effect that economic events have on the worth of a country's currency and its exchange rates.
- Understand the role of inflation and interest rates in affecting currency valuation.
Verified Answer
JM
Learning Objectives
- Evaluate the effect that economic events have on the worth of a country's currency and its exchange rates.
- Understand the role of inflation and interest rates in affecting currency valuation.