When the Exchange Rate for a Currency Rises Relative to That

question 78

Multiple Choice

When the exchange rate for a currency rises relative to that of another country, the rising currency

• A) has decreased in value relative to the other currency.
• B) has increased in value relative to the other currency.
• C) has been devalued by its government.
• D) reflects increased political risk in its home country.

---

Definitions:

Design Dimensions

Fundamental aspects or characteristics that define and describe the structure, function, and scope of a design or system.

Centralization

The concentration of decision-making authority at upper levels of an organizational hierarchy.

Demand Instrument

A financial document or security that requires payment of the specified amount on demand by the holder, without specifying a particular time for repayment.

Bearer Instrument

A negotiable financial instrument that is not registered in anyone's name and can be transferred from one person to another by possession.