Which One of the Following Statements Is Correct Assuming That

question 237

Multiple Choice

Which one of the following statements is correct assuming that exchange rates are quoted as units of foreign currency per dollar?

• A) The exchange rate moves opposite to the value of the dollar.
• B) The exchange rate rises when the Canadian inflation rate is higher than the foreign country's.
• C) When a foreign currency appreciates in value it strengthens relative to the dollar.
• D) The exchange rate falls as the dollar strengthens.
• E) The exchange rate is unaffected by differences in the inflation rates of the two countries.

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Definitions:

Comparator Function

A mechanism or process that compares two values or inputs, often used in electronics, computing, and regulatory processes to maintain a desired state.

Proprioceptors

Sensory receptors located in muscles and tendons that sense the position and movement of the body parts.

Pacinian Corpuscles

Sensory receptors that detect mechanical changes and vibrations, contributing to the sensation of touch and pressure.

Ruffini End Organs

Sensory receptors within the skin that respond to stretch and twisting, contributing to the sense of body position and touch.