If the Fed Announces That It Will Decrease the U

question 30

Multiple Choice

If the Fed announces that it will decrease the U.S. interest rates, and European Central Bank takes no action, then the value of euro will ____ against the value of U.S. dollar. The Fed's action is called ____ intervention.

• A) appreciate; direct
• B) depreciate; direct
• C) appreciate; indirect
• D) depreciate; indirect

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much individual values deviate from the mean.

Correlation

A statistical measure that expresses the extent to which two variables change together, indicating a relationship but not causation.

Standard Deviation

A measure that represents the dispersion or variation of a dataset relative to its mean, indicating how spread out the data points are.

Correlation

A numerical indicator showing how much two or more variables move in relation to each other.