If One Day the Dollar Is Trading at 1

question 179

Multiple Choice

If one day the dollar is trading at 1.00 euro per dollar and the next day the exchange rate is 0.88 euros per dollar, one possible factor that might have led to this change is

• A) an increase in the U.S.interest rate.
• B) an increase in the expected future exchange rate.
• C) the Fed selling dollars.
• D) the Fed buying dollars.
• E) a decrease in the European interest rate.

---

Definitions:

Cellular Division

The process by which a parent cell divides into two or more daughter cells, crucial for growth, repair, and reproduction in organisms.

Spindle Fibers

Microtubule structures that form during cell division to separate chromosomes into the daughter cells.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, regulating the entry and exit of substances.

Cytoplasm

Cytoplasm refers to the jelly-like substance within a cell, excluding the nucleus, that contains organelles and is the site of many metabolic processes.