For the three years from early 2002 to early 2005, the euro maintained a strong and steady rise in value against the U.S. dollar (USD). After a brief respite in 2005, the euro continued its climb against the USD into 2008. Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?
A) severe U.S. balance of payments deficits
B) a general weakening of the dollar after the attacks of September 11, 2001
C) large U.S. balance of payment surpluses
D) All of the above were contributing factors.

Question

Quizplus · Accepted Answer

Large U.S. balance of payment surpluses would have strengthened the dollar, not weakened it. Therefore, it was not a contributing factor in the ascent of the euro and the decline in the dollar.

For the Three Years from Early 2002 to Early 2005