Suppose the Dollar Is Devalued

question 39

Multiple Choice

Suppose the dollar is devalued.If an import contract is written in a foreign currency,then the value of U.S.imports:

• A) Decrease
• B) Increase
• C) Stay the same
• D) Not possible to answer with the given information

---

Definitions:

Factor Portfolio

An investment portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes.

Unsystematic Risk

The risk associated with a specific issuer of a security, such as a company's management decisions or financial health, distinct from market-wide risks.

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Beta Over Time

A metric that evaluates the volatility of an asset or portfolio in comparison to the market as a whole, observed across different time periods.