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.

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Definitions:

Protein Synthesis

The biological process by which cells build protein molecules based on genetic codes in the DNA and RNA.

Telomeres

Telomeres are the protective caps at the ends of chromosomes, which prevent the loss of genetic information during cell division and play a key role in cellular aging and cancer.

Transposons

DNA sequences that can change positions within the genome.