The Swiss Franc Is Considered to Be Stronger If

question 75

Multiple Choice

The Swiss franc is considered to be stronger if

• A) it takes fewer francs to acquire a foreign currency such as a dollar.
• B) it takes more francs to acquire a foreign currency such as a dollar.
• C) it takes fewer dollars to acquire a franc.
• D) it takes fewer dollars and fewer euros to acquire a franc.

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Definitions:

Board of Governors

The executive leadership of the Federal Reserve System, responsible for the formulation of monetary policies in the United States.

Federal Reserve

The central banking system of the United States, responsible for setting monetary policy.

Term

A fixed or limited period for which something, e.g., office, investment, or a condition, lasts or is intended to last.

Reserve Ratio

The fraction of deposits a bank must hold in reserve and not lend out, as dictated by central banking regulations.