A Reduction in the British Interest Rate Relative to the U.S

question 113

Multiple Choice

A reduction in the British interest rate relative to the U.S. interest rate will cause a(n) :

• A) depreciation of the dollar and an appreciation of the British pound.
• B) appreciation of the dollar and an appreciation of the British pound.
• C) appreciation of the dollar and a depreciation of the British pound.
• D) depreciation of the dollar and a depreciation of the British pound.

---

Definitions:

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Prestige

The level of respect, admiration, or esteem that a person, organization, or entity is regarded with, often based on perceived success, achievement, or quality.

Superiority

The state or quality of being superior or better than others, often in skills, performance, or status.

Internal Locus

The belief that one controls their own destiny and outcomes are the result of personal effort and actions.