An Appreciation of the U.S. Dollar Occurs When

question 215

Multiple Choice

An appreciation of the U.S. dollar occurs when

• A) the international price of the dollar falls.
• B) the international price of the dollar rises.
• C) the U.S. demand for foreign currencies increases.
• D) the supply of dollars in international markets increases.

---

Definitions:

U.S. Dollar

A major global currency issued by the United States, commonly used in international financial transactions and as a reserve currency.

Arbitrageurs

Traders who attempt to profit by exploiting price differences of identical or similar financial instruments on different markets or in different forms.

Exchange Rate

The price of one currency in terms of another currency for conversion.

Currency

A system of money in general use in a particular country or region, serving as a medium of exchange, unit of account, and store of value.