If a Currency's Foreign Exchange Value Is Expected to Fall

question 87

Multiple Choice

If a currency's foreign exchange value is expected to fall, then

• A)demand for the currency will rise in anticipation.
• B)the current foreign-exchange value of the currency will rise.
• C)the current foreign-exchange value of the currency will fall.
• D)the country's nominal interest rate will rise.

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Definitions:

Supply Curves

A graphical representation that shows the relationship between the price of a good and the quantity of that good that producers are willing to supply.

Levied

Levied refers to the imposition of a tax, fee, or fine by a governmental authority, requiring payment from individuals or organizations.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied by producers over a period of time.

Levied

Imposed by authority, typically referring to taxes, fees, or fines.