Suppose That $1 Will Buy 0

question 164

Multiple Choice

Suppose that $1 will buy 0.8 Swiss francs in 2015 and 0.9 francs in 2016.This change would have occurred as a result of

• A) an increase in the demand for dollars in the foreign exchange market.
• B) a decrease in the demand for dollars in the foreign exchange market.
• C) an increase in the supply of dollars in the foreign exchange market.
• D) no change in the supply of dollars in the foreign exchange market.

---

Definitions:

Cash-Out Combinations

Financial strategies or transactions where owners of a business sell their stake in the company, partially or entirely, for cash.

Fair Dealing

A legal doctrine requiring parties to engage in business transactions in a just, equitable, and non-discriminatory manner.

Minority Shareholders

Shareholders who own a smaller portion of a company's shares, compared to majority shareholders, and often have limited influence on company decisions.

Limited Duration

Describes contracts, agreements, or conditions that are effective for a specific, finite period of time.