If the US Interest Rate Rises While Interest Rates in the Rest

question 93

Multiple Choice

If the U.S. interest rate rises while interest rates in the rest of the world do not change, the higher
u.S. interest rate

• A) has no effect on the demand for dollars.
• B) decreases the demand for dollars.
• C) will stop all trading between the currencies of the U.S. and other countries.
• D) increases the demand for dollars.

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Definitions:

Environmental Analysis

The process by which strategists evaluate the external opportunities and threats that could affect the future direction and dynamics of a business.

Fewer Resources

The state of having limited assets, funds, or materials to work with or utilize in a project, business, or operation.

Philanthropic Goodwill

The positive reputation and relationships a business builds through charitable actions, donations, or involvement in community services.

Internal Environment

The conditions, entities, events, and factors within an organization that influence its activities and choices, including its culture, employees, and management.