If There Is an Increase in the U

question 15

Multiple Choice

If there is an increase in the U.S. demand for European goods, then

• A)both the dollar and the euro will appreciate.
• B)both the dollar and the euro will depreciate.
• C)the dollar will depreciate against the euro.
• D)the dollar will appreciate against the euro.
• E)the exchange rate between the dollar and the euro will remain unchanged, but their exchange rates will appreciate against other currencies.

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Definitions:

Hot Stocks

Shares of companies that are in high demand, often due to recent success, favorable news, or market speculation.

Market Breadth

Market breadth is an indicator used to gauge the health of the equity market, based on the number of stocks advancing versus those declining.

Short Interest

The overall sum of shares in a certain stock that have been shorted by investors and still haven't been covered or concluded.

Odd-lot Trading

The buying or selling of stocks in quantities that are less than the standard trading unit or lot prescribed by a stock exchange.