Which of the Following Groups Is Likely to Be Hurt

question 3

Multiple Choice

Which of the following groups is likely to be hurt economically if the value of the U.S. dollar rises relative to the euro?

• A) American firms with euro-dominated loans
• B) American farmers exporting goods to Europe
• C) European firms exporting goods to the United States
• D) American tourists visiting Europe

---

Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Cash Purchase

A transaction method in which goods or services are paid for in full with cash at the time of purchase.

Incremental Value

Incremental value refers to the additional or extra value generated by undertaking a specific action or investment compared to not doing so.

Merger Premium

The merger premium is the additional cost above the market price that a company pays to acquire another company, often reflecting the perceived future value of the target company.