If Foreign Demand for a Country's Goods Increases, 1

question 24

Multiple Choice

If foreign demand for a country's goods increases, 1.the value of its currency will rise
2) the value of its currency will decline
3) the value of other currencies relative to its currency will be revalued
4) the value of other currencies relative to its currency will be devalued

• A) 1 and 3
• B) 1 and 4
• C) 2 and 3
• D) 2 and 4

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Definitions:

Currency Exchange

The process of exchanging one form of currency for another, based on current exchange rates.

Euros

The official currency used in 19 of the 27 European Union countries, known as the Eurozone.

Weakens

Describes the decrease in strength or value of an entity, such as currency depreciating in value against others in the foreign exchange market.

Euro

The official currency of 19 out of the 27 European Union countries, known as the eurozone.