BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The dollar is stable.
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The dollar has strengthened.
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The dollar has weakened.
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None of the above
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Detailed explanation-1: -A weakening dollar means that imports become more expensive, but it also means that exports are more attractive to consumers in other countries outside the U.S. Conversely a strengthening dollar is bad for exports, but good for imports.
Detailed explanation-2: -The dollar is considered strong when it rises in value against other currencies in the foreign exchange market. A strengthening U.S. dollar means it can buy more of a foreign currency than before.
Detailed explanation-3: -The British pound (GBP) has enjoyed a nominal premium to the U.S. dollar (USD) for many years, owing both to historical convention and the Bank of England’s willingness to intervene in times of crisis to defend the pound.
Detailed explanation-4: -Is GBP a stronger currency than USD? Generally, one pound is worth more than one dollar, so on the face of it, sterling is a stronger currency than the US dollar. However, the exchange rate is not necessarily the only indicator of the power of a currency or how much influence is held over international trading markets.