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- Subject
- Foreign Exchangeeconomics-mcqs › foreign-exchange
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What was a key factor that prevented the U.S. dollar from depreciating during its appreciation phase between 1981 and 1985?
Multiple choice question for Foreign Exchange. Select an option, then review the explanation below.
Explanation
The primary reason the dollar maintained its value during the 1981-1985 appreciation period was due to substantial foreign investment flowing into the U.S. economy. This influx of capital supported demand for the dollar, counteracting forces that might have caused it to decline.
More Foreign Exchange MCQs
Practice related questions from the same subject.
- 1.In a floating exchange rate system, what is the typical trend observed regarding currency values?
- 2.What term describes the increase in the value of one currency compared to another?
- 3.What is the typical impact of a fiscal expansion in the UK on the value of the pound sterling?
- 4.What do we call exchange rates that fluctuate based solely on market supply and demand without government intervention?
- 5.What type of exchange rate system was established by the agreements made at the 1944 Bretton Woods conference?