While studying abroad, Joe found that his U. S. dollars did not stretch as far as he had hoped. Every time he exchanged U. S. dollars for euros, he gave up more dollars in exchange for fewer euros. Obviously, the dollar was weak against the euro. A. True B. False

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21 February, 09:10

While studying abroad, Joe found that his U. S. dollars did not stretch as far as he had hoped. Every time he exchanged U. S. dollars for euros, he gave up more dollars in exchange for fewer euros. Obviously, the dollar was weak against the euro. A. True B. False

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Blake Martin · Answer 1

The statement is: True.

Explanation:

Currency exchange rates determine how much currency values compared to another currency. Different factors influence the valuation of those currencies but mainly it depends on how much they can be used and accepted in different parts of the world. The more regions accepting the currency, the higher the value of the currency.

Nowadays the United States dollar (USD) is the most used currency worldwide. However, it has historically had a lower value than the Euro (EUR). It means the USD is weaker in front of the EUR even nowadays, implying every time people want to exchange dollars for euros they get fewer euros for more dollars.