When the US dollar grows more valuable in relation to the euro, it has also grown more valuable in relation to every other currency.

Question

Social Studies

Kierra Harding

28 September, 05:35

When the US dollar grows more valuable in relation to the euro, it has also grown more valuable in relation to every other currency.

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Answers (1)

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Amya Leonard · Answer 1

The given statement is false.

Explanation:

When US dollar grows more valuable in relation to the euro it values more money than previous. If traders be succeed to take customers in confidence then the demand for product increases otherwise not. When the value is increasing means the amount of money is same but you can purchase more things by using same amount of money. This increase the purchasing power of the currency relative to other currencies.

A strong dollar's purchasing capacity is more than a weak dollar. Within the U. S. the strength of the dollar in terms of purchasing power is less important because all types of transactions are dollar based. Prices of imported goods rise when the dollar is weak and fall when the dollar is strong.