For the three years from early 2002 to early 2005, the euro maintained a strong and steady rise in value against the U.S. dollar (USD). Which of the following were NOT a contributing factor in the assent of the euro and the decline in the dollar?

Question

Quizplus · Accepted Answer

Large U.S. balance of payment surpluses were not a contributing factor in the ascent of the euro and the decline in the dollar. In fact, large U.S. balance of payment deficits were a contributing factor as they decreased the demand for the dollar and increased demand for other currencies, such as the euro. The general weakening of the dollar after the attacks of September 11, 2001, also contributed to the rise of the euro.

For the Three Years from Early 2002 to Early 2005