Any event that increases the supply of British pounds to be exchanged for U.S. dollars should result in a(n) ____ in the value of the British pound with respect to ____, other things being equal.
A) increase; U.S. dollar
B) increase; nondollar currencies
C) decrease; nondollar currencies
D) decrease; U.S. dollar

Question

Quizplus · Accepted Answer

An increase in the supply of British pounds in exchange for U.S. dollars would result in an increase in the GBP/USD exchange rate, meaning that it would take more pounds to purchase one dollar. This would result in a decrease in the value of the British pound with respect to the U.S. dollar.

Any Event That Increases the Supply of British Pounds to Be