Which of the following will lead to a depreciation of the dollar against the British pound?
A) an increase in U.S. interest rates
B) an increase in British demand for U.S. imports
C) a decrease in British demand for U.S. assets
D) a decrease in U.S. demand for British goods

Question

Quizplus · Accepted Answer

A decrease in British demand for U.S. assets would lead to a depreciation of the dollar because it would reduce the demand for dollars, as fewer pounds are being exchanged for dollars to purchase U.S. assets.

Which of the Following Will Lead to a Depreciation of the Dollar