If the Trade-Weighted Dollar Moves from an Index Value to 100

question 172

True/False

If the trade-weighted dollar moves from an index value to 100 to 110, then the dollar depreciates by 10 percent against the trade-weighted averages of the exchange rates of the major trading partners of the United States.

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Definitions:

Arbitrary

Stemming from a random selection or personal impulse instead of being guided by any logical rationale or structured approach.

Representation

The act of speaking or acting on behalf of someone or the depiction of something in art or literature.

Symbol

A symbol is a mark, sign, or word that indicates, signifies, or is understood as representing an idea, object, or relationship.