The Data for the Inflation Rates and Currency Exchange Rates

question 41

Multiple Choice

The data for the inflation rates and currency exchange rates of the United States, Japan and Brazil over the period 1980-2010 confirm that

• A)the U.S.dollar appreciated against the currency of a country with a relatively lower inflation rate.
• B)the U.S.dollar appreciated against the currency of a country with a relatively higher inflation rate.
• C)the U.S.dollar appreciated regardless of the inflation rates in other countries.
• D)the U.S.dollar depreciated regardless of the inflation rates in other countries.
• E)the U.S.dollar was fixed.

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Definitions:

Charter

A legal document giving a corporation or other organization its rights and privileges, or a charter can also refer to the authorization for a municipal corporation to operate.

Compensation

involves payment or remuneration provided to an individual or entity for loss, injury, or suffering, aiming to restore financial or emotional equilibrium.

Blue Sky Laws

State laws in the United States designed to protect investors from fraud by requiring sellers of new issues of securities to register their offerings and provide financial details.

Securities

Financial instruments that represent either ownership (e.g., stocks) or a debt agreement (e.g., bonds) between the buyer and the issuer.