With the start of the subprime financial crisis in August 2007,the dollar ________ in value against the euro as the Fed lowered interest rates.By December of 2008,with the financial crisis spreading throughout Europe,foreign central banks cut their interest rates,leading to a ________ in the value of the dollar relative to the euro.

Question

Quizplus · Accepted Answer

The sentence mentions that with the start of the subprime financial crisis, the dollar declined in value against the euro as the Fed lowered interest rates. This implies that the dollar lost value relative to the euro. Additionally, the sentence later mentions that foreign central banks cut their interest rates, which led to a rise in the value of the euro relative to the dollar. Therefore, the best choice is C, which states that the dollar declined in value against the euro and subsequently rose in value due to the euro's increase.

With the Start of the Subprime Financial Crisis in August