Which of the following helps explain the increase in value of the euro against the U.S.dollar in the years leading to 2008?
A)Fall in U.S.financial markets leading to reduced fund inflows into that country.
B)All-time high interest rate in the euro zone leading to fund flows into the region.
C)Failure and bail-out of financial institutions in countries like Greece and Portugal.
D)Concerns over slow economic growth and growing budget deficits among several EU member states.

Question

Quizplus · Accepted Answer

The fortunes of the euro began improving in late 2001 when the dollar weakened,and the currency stood at a robust all-time high of €1 = $1.54 in early March 2008.One reason for the rise in the value of the euro was that the flow of capital into the United States had stalled as the U.S.financial markets fell.

Which of the Following Helps Explain the Increase in Value