Asked by Aaron Portillo on Jul 25, 2024
Verified
An increase in the dollar price of the British pound will
A) increase the pound price of dollars.
B) decrease the pound price of dollars.
C) leave the pound price of dollars unchanged.
D) cause Britain's terms of trade with the United States to deteriorate.
Dollar Price
The cost or valuation of a good, service, or asset denominated in U.S. dollars.
British Pound
The British Pound is the official currency of the United Kingdom, recognized globally and commonly represented by the symbol £.
Price Unchanged
A situation in which the selling price of a good or service remains the same over a given period.
- Become familiar with how foreign exchange rates operate and their consequences on international business and the flow of finances.
Verified Answer
TB
Travis BàndJul 28, 2024
Final Answer :
B
Explanation :
An increase in the dollar price of the British pound means that it takes more dollars to purchase one pound, which implies that the value of the pound has appreciated relative to the dollar. Therefore, the pound price of dollars would decrease.
Learning Objectives
- Become familiar with how foreign exchange rates operate and their consequences on international business and the flow of finances.