Gradium Technosoft, One of the Leading Laptop Manufacturers in the Country

question 49

Multiple Choice

Gradium Technosoft, one of the leading laptop manufacturers in the country of Bhodonia, wants to open its stores in the country of Cregonasa. To finance the stores' rent, Gradium Technosoft sells Bhodos, currency of Bhodonia, and it acquires Crego dollars, currency of Cregonasa. In the context of exchange rates, identify the most likely outcome if the demand for Crego dollars is higher than that of Bhodos.

• A) Bhodos will need to undergo a process of demonetization.
• B) More Bhodos will be required to buy Crego dollars.
• C) The value of Bhodos will be considered to have depreciated relative to the Crego dollars.
• D) Currencies belonging to Crego dollars and Bhodos will solely be eligible for FX swaps.

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