Hennessy Hardware, a U.S. retailer, buys much of its inventory from Asian countries. Hennessy Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Hennessy imports.
A) rose
B) fell
C) remained constant
D) floated unpredictably

Question

Quizplus · Accepted Answer

If the value of the dollar rises relative to the currencies of the countries from which Hennessy imports, then Hennessy will be able to purchase more inventory for the same amount of dollars. This would result in lower costs for Hennessy and higher profits or lower prices for customers.