MCQOPTIONS
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| 1. |
The real effective exchange rate for the U.S dollar ? |
| A. | reflects only the influences of merchandise or real trade on the dollar’s exchange value |
| B. | reflects only transactions in the currency futures market |
| C. | is the weighted average of the dollar exchange rate relative to the currencies of important U.S trading partners adjusted for inflation? |
| D. | is the weighted average of the dollar exchange rate relative to the currencies of important U.S trading partners unadjusted for inflation? |
| Answer» D. is the weighted average of the dollar exchange rate relative to the currencies of important U.S trading partners unadjusted for inflation? | |