Between 1999 and 2000,the euro fell in value against the U.S.dollar leading critics to claim that the euro was a failure.Which of the following was a major reason for the fall in the euro's value?
A)Steady increase in gasoline prices during the period.
B)Funds moving out of Europe to finance U.S.stocks and bonds purchases.
C)Decline in the productivity of European companies.
D)Sharp increase in imports from the United States into the euro zone.

Question

Quizplus · Accepted Answer

After starting life in 1999 at €1 = $1.17,the euro steadily fell until it reached a low of €1 = $0.83 cents in October 2000,leading critics to claim the euro was a failure.A major reason for the fall in the euro's value was that international investors were investing money in booming U.S.stocks and bonds and taking money out of Europe to finance this investment.

Between 1999 and 2000,the Euro Fell in Value Against the U.S.dollar