When studying abroad last year, Blake found that his U.S. dollars did not stretch as far as he had hoped. Each time he exchanged U.S. dollars for euros, he gave up more U.S. dollars in exchange for less euros. The exchange rate indicates:
A) the dollar has gained strength against the euro.
B) the euro is weak against the U.S. dollar.
C) the euro has gained strength against the dollar.
D) the demand for dollars is stronger than the demand for euros.

Question

Quizplus · Accepted Answer

When Blake exchanges U.S. dollars for euros and receives fewer euros in exchange for each dollar, it means that the euro is stronger compared to the U.S. dollar. Therefore, the correct answer is C) the euro has gained strength against the dollar.

When Studying Abroad Last Year, Blake Found That His U