When the U.S.dollar declines against European currencies,it is

Question

Quizplus · Accepted Answer

When the U.S. dollar declines against European currencies, it becomes more expensive for banks that have financed U.S. dollar assets with liabilities denominated in European currencies. This can be potentially harmful to these banks as it can lead to financial instability, losses, and bankruptcy. Therefore, choice C is the best choice as it explains the potential harm caused by a decline in the U.S. dollar against European currencies for certain banks.

When the U.S.dollar Declines Against European Currencies,it Is