If the Central Banks of the World Chose to Diversify

question 95

Multiple Choice

If the central banks of the world chose to diversify their foreign-exchange reserves away from the dollar and into the euro,

• A)this would have the result of a strengthening of the value of the dollar.
• B)this would have the result of a weakening in the value of the dollar.
• C)this would not have much impact, as the information would be lost in the day-to-day volatility of exchange rates.

---

Definitions:

Intangible Assets

Non-physical assets with economic value, such as patents, trademarks, copyrights, and goodwill, that are expected to provide benefits to a business over multiple periods.

Journalize

The act of recording financial transactions into the journal entries of an accounting system.

Upgrade

The process of enhancing or improving an existing system, software, or product to boost performance or add features.

Delivery Truck

A vehicle used for transporting goods from one location to another, primarily for business purposes.