When the dollar "rises" compared to other currencies, this means A) it takes more dollars to equal a unit of foreign currency. B) it takes fewer dollars to equal a unit of foreign currency. C) the value of a unit of foreign currency is harder to measure in dollars. D) the value of a dollar is harder to measure, compared to foreign currencies.

Question

Meadow Braun

Business

22 August, 18:15

When the dollar "rises" compared to other currencies, this means A) it takes more dollars to equal a unit of foreign currency. B) it takes fewer dollars to equal a unit of foreign currency. C) the value of a unit of foreign currency is harder to measure in dollars. D) the value of a dollar is harder to measure, compared to foreign currencies.

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Answers (1)

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Ayden Briggs · Answer 1

B) it takes fewer dollars to equal a unit of foreign currency.

Explanation:

A rise in a currency means that its demand rises. When the value of dollar goes up, it means that the purchasing power of the currency has increased compared to other currencies. The increase may be as a result of high trading rate in the economy. A rise in dollar value in this case, means that its demand rises, rise in demand results to proportionate increase in the amount required to afford a single dollar. In general, a rise in dollar means that it takes fewer dollar to equal a unit of foreign currency.