The High Foreign Exchange Value of the U

question 113

Multiple Choice

The high foreign exchange value of the U.S.dollar in the early 1980s can best be explained by:

• A) Additional investment funds made available from overseas
• B) Lack of investor confidence in U.S.fiscal policy
• C) Market expectations of rising inflation in the United States
• D) American tourists overseas finding costs increasing

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Definitions:

Consideration

Something of value exchanged between parties in a contract, required for the contract to be legally binding.

Contract Modification

Any change or alteration made to the terms of a contract, agreed upon by all parties involved.

Price Change

The fluctuation in the selling price of goods or services over a period of time.

Moral Obligation

A duty or commitment that is not legally enforceable but is dictated by personal ethics or social norms.