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.

---

Definitions:

Semicircular Canals

Sense organs in the inner ear that contribute to equilibrium by responding to rotation of the head.

Equilibrium Difficulties

Challenges in maintaining physical balance, often related to issues in the inner ear or brain.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, responsible for hearing and balance.

Five Senses

The traditional set of senses used for perception: sight, hearing, taste, smell, and touch.