Which One of the Following Statements Is Correct Assuming That

question 7

Multiple Choice

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

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

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Needs

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