7-87 The U.S.dollar's decline against European currencies is

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When the U.S. dollar weakens against European currencies, banks that have financed U.S. dollar assets with liabilities denominated in European currencies may face potential harm. This is because they will need to pay back their liabilities with more of their own currency, which could result in losses. European banks may be more likely to hold such positions, making them particularly vulnerable to the dollar's decline.

7-87 the U.S.dollar's Decline Against European Currencies Is