If the Exchange Rate for US Dollars Relative to Australian

question 35

True/False

If the exchange rate for US dollars relative to Australian dollars goes from US$1 = A$2.10 to US$1 = A$2.20,the Australian dollar has strengthened.

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Definitions:

Treasury Debt

Government-issued bonds to finance government spending, considered low-risk investments.

Mortgage-Backed

Mortgage-backed refers to securities that are secured or backed by mortgage loans, allowing investors to receive payments derived from the principal and interest payments made by borrowers.

Money Market

The section of the financial market dealing with the lending and borrowing of short-term funds, including treasury bills, commercial paper, and certificates of deposit.

Repurchase Agreements

Short-term loans where a borrower sells securities to a lender with an agreement to buy them back at a higher price at a future date.