The determination of whether a currency is overvalued or undervalued is based on a comparison with
A) the Japanese yen.
B) the U.S. dollar.
C) the British pound.
D) the euro.
E) none of these.

Question

Quizplus · Accepted Answer

The U.S. dollar is widely used as a reference currency in international trade and financial markets, so it is usually the currency used for comparison when determining whether a currency is overvalued or undervalued.

The Determination of Whether a Currency Is Overvalued or Undervalued