An Appreciation of the Dollar on the Foreign Exchange Market

question 63

Multiple Choice

An appreciation of the dollar on the foreign exchange market would result in all of the following, except:

• A)a decrease in the dollar prices paid by U.S.importers.
• B)an increase in the cost of vacations in Hawaii for Japanese tourists.
• C)foreign holidays for U.S.residents to be less expensive.
• D)an increase in the foreign currency prices paid for U.S.exports.
• E)a decrease in the demand for U.S.exports.

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Definitions:

Customer Loyalty

The likelihood of previous customers to continue purchasing from a specific retailer or brand over time.

Purchases

The act of buying goods or services, an exchange of money for ownership or use.

Private-label Brands

Brands that are owned by retailers or suppliers, not the manufacturers, but are produced by third parties.

Differentiate

To distinguish or create a distinct difference between products, services, or concepts, often to gain a competitive advantage.