From Mid-2008 Through Early 2009,the Value of the Dollar Moderately

question 79

Multiple Choice

From mid-2008 through early 2009,the value of the dollar moderately increased against major currencies,despite the fact that the American economy was suffering from a serious financial crisis.Which of the following was a reason for this phenomenon?

• A)high real interest rates in the United States compared to any other developed region in the world sparked an inflow of funds into the country.
• B)U.S.assets were characterized by a high-risk,high-return payoff which prompted foreign investors to park their funds.
• C)foreign investors were excited at the possibility of high returns following the government bail-out of financial institutions.
• D)foreign investors put their money in low-risk U.S.assets such as low-yielding U.S.government bonds.
• E)foreign investors saw opportunities in the United States as the level of indebtedness had begun to reduce.

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Definitions:

Object

In general usage, any material thing that can be seen and touched. In psychological contexts, an object can refer to a target of attention or affection.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development that explains how children construct a mental model of the world.

Circular Reactions

Repetitive actions in early childhood development that allow infants to explore and learn about their environment.

Thinking

Thinking is the mental process involving reasoning, problem-solving, decision-making, and creativity, allowing individuals to process information, make sense of the world, and form judgements.