Why Did the Dollar Fall in Value Relative to Other

question 126

Multiple Choice

Why did the dollar fall in value relative to other currencies in the first half of 2011?

• A) Foreign investors increased their investment in U.S. financial assets, and this raises the demand for dollars.
• B) Foreign investors have reduced the level of investment in U.S. financial assets, decreasing the demand for dollars.
• C) Foreign investors no longer want to hold dollars and this raises the demand for dollars.
• D) The negative trade balance due to the current account deficit reduces the supply of dollars.

---

Definitions:

Self-Esteem

A measure of how much you value and respect yourself.

Perceived Similarity

The extent to which individuals believe they share common attributes, beliefs, or interests with others.

Perceived Distinctiveness

The degree to which individuals see themselves as different from others in their social surroundings.

Symmetrical Faces

Faces that are mirror images on the left and right sides, often associated with attractiveness in human perception.