Which One of the Following Statements Is Correct Assuming That

question 41

Multiple Choice

Which one of the following statements is correct assuming that exchange rates are quoted as units of foreign currency per dollar?

• A) The exchange rate moves opposite to the value of the dollar.
• B) The exchange rate rises when the U.S. inflation rate is higher than the foreign country's.
• C) When a foreign currency appreciates in value it strengthens relative to the dollar.
• D) The exchange rate falls as the dollar strengthens.

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Definitions:

Population Values

Population values refer to the actual values or characteristics of every member of a defined group or population.

Sampling Distribution

A statistic's probability layout derived through random sampling.

Probability Distribution

The function that describes the likelihood of obtaining the possible values that a random variable can take.

Likelihood of Occurrence

Likelihood of occurrence refers to the probability that a given event will happen, often used in statistics to estimate outcomes.