In 2012,global profits for McDonald's increased by 6.3 percent when measured in local currencies,but fell by 0.7 percent when measured in dollars.The reason for this discrepancy is the value of the
A)euro decreased relative to the British pound.
B)British pound increased relative to the U.S.dollar.
C)U.S.dollar increased relative to most other currencies.
D)U.S.dollar decreased relative to the Japanese yen.

Question

Quizplus · Accepted Answer

The decrease in profits when measured in dollars suggests that the U.S. dollar increased in value relative to most other currencies. This means that the other currencies, such as the euro and the British pound, weakened against the U.S. dollar, reducing the value of profits earned in those currencies when converted back to dollars.

In 2012,global Profits for McDonald's Increased by 6