Choose the correct statement.

A. The U. S. dollar has high-frequency fluctuations against the yuan and the yen, and smooth changes against the euro.

B. The U. S. dollar has high-frequency fluctuations against the euro and the yen, and smooth changes against the yuan.

C. The U. S. dollar has depreciated against the yen since 2012.

D. The U. S. dollar has consistently depreciated against the euro since 2000.

Question

Social Studies

Zaiden Walls

18 April, 15:41

Choose the correct statement.

A. The U. S. dollar has high-frequency fluctuations against the yuan and the yen, and smooth changes against the euro.

B. The U. S. dollar has high-frequency fluctuations against the euro and the yen, and smooth changes against the yuan.

C. The U. S. dollar has depreciated against the yen since 2012.

D. The U. S. dollar has consistently depreciated against the euro since 2000.

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Answers (1)

Know the Answer?

Arjun Austin · Answer 1

Letter B is the correct answer.

The U. S dollar has demonstrated high fluctuations against the Euro and the yen, but not as much against the yuan. As every other currency, the dollar price of the United States changes based on the supply and demand in the foreign exchange market. What causes the U. S dollar price to increase is the high demand for the dollar or the shortage in its supply.