Which One of the Following Statements Is the MOST Accurate

question 5

Multiple Choice

Which one of the following statements is the MOST accurate?

• A) A rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
• B) A rise in the interest rate offered by dollar deposits causes the dollar to depreciate.
• C) A rise in the interest rate offered by dollar deposits does not affect the U.S. dollar.
• D) For a given euro interest rate and constant expected exchange rate, a rise in the interest rate offered by dollar deposits causes the dollar to appreciate.
• E) A rise in the interest rate offered by the dollar causes the euro to appreciate.

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Federal Court

courts established by the constitution or laws of the United States that have jurisdiction over federal laws, interstate matters, and other specific cases.

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The legal authority granted to federal courts and agencies to hear and decide cases that involve the U.S. Constitution, federal laws, disputes between states, or parties from different states.

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