If the USDollar Depreciates Relative to the Swiss Franc,then

question 84

Multiple Choice

If the U.S.dollar depreciates relative to the Swiss franc,then:

• A)Swiss goods become more expensive in the U.S.
• B)U.S.goods become more expensive in Switzerland.
• C)Swiss investors will pay more Swiss francs to buy one unit of U.S.dollar.
• D)the U.S.import of Swiss goods will increase.
• E)the U.S.dollar per Swiss franc exchange rate will decrease.

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Definitions:

Downward Pressure

Forces that cause the value or price of something to decrease.

Reverse Auction

A type of auction in which the roles of buyer and seller are reversed, with sellers competing to obtain business from the buyer by offering the lowest price for their goods or services.

Bid Prices

The highest price that a buyer is willing to pay for a good, security, or commodity in a trading context.

Reverse Auctions

A type of auction in which sellers bid to supply goods or services to a buyer, with the price decreasing in each bid.