In the dollar-euro foreign exchange market, if many financial investors become worried about the stability of the euro and thus invest in U.S. financial assets instead of in European assets, then the:

Question

Quizplus · Accepted Answer

When investors move their investments from European assets to U.S. assets, they sell euros to buy dollars, increasing the supply of euros and causing the euro to depreciate.

In the Dollar-Euro Foreign Exchange Market, If Many Financial Investors