If the US Dollar Appreciates in the Foreign Exchange Market

question 21

Multiple Choice

If the U.S. dollar appreciates in the foreign exchange market,

• A) American goods will become more expensive for foreign buyers and foreign goods will be cheaper for Americans.
• B) American goods will become less expensive for foreign buyers and foreign goods will be more expensive for Americans.
• C) American goods will become more expensive for foreign buyers and foreign goods will be more expensive for Americans.
• D) American goods will become cheaper for foreign buyers and foreign goods will be cheaper for Americans.
• E) neither the price of U.S. exports nor the price of U.S. imports will change.

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Definitions:

Stradivarius

A type of high-quality stringed instrument made by members of the Stradivari family, particularly renowned violins.

Bailor

The party in a bailment who temporarily transfers possession but not ownership of a property to another party, the bailee.

Leasehold

An interest in a property that allows the holder (lessee) to use and occupy the land or premises for a specified period, under certain conditions, but does not provide ownership.

Life Estates

A legal right to use and benefit from a property for the duration of an individual's lifetime.