Statement I: Rising interest rates in the U.S.push up the dollar.
Statement II: The U.S.dollar is backed by gold.

Question

Quizplus · Accepted Answer

Statement I is true because higher interest rates in the U.S. make investments in dollar-denominated assets more attractive, increasing the demand for dollars and thus, pushing up its value. However, statement II is false because the U.S. dollar is not backed by gold since the U.S. abandoned the gold standard in the 1970s, and the value of the dollar is now determined by market forces, including supply and demand, and monetary policy decisions made by the U.S. Federal Reserve.

Statement I: Rising Interest Rates in the U