The dollar is regarded as the "safe haven" currency; investors flock to it when they are worried about the outlook for the global economy. Fears were at their greatest in late 2008 and early 2009 after the collapse of the Lehman Brothers investment bank in September 2008. As investors flocked to the dollar

Question

Quizplus · Accepted Answer

When investors flock to the dollar, the demand for dollars increases. As a result, the exchange rate of the dollar increases because there are more buyers than sellers. This leads to a situation where the value of the dollar goes up in relation to other currencies.

The Dollar Is Regarded as the "Safe Haven" Currency; Investors