by Anonymous on April 28th, 2007

Anonymous

Question

Help answer this question below.

A sudden expectation of future depreciation of the dollar causes funds to flow------the US and the dollar to actually ---------? a. out of, appreciate b. out of, depreciate c. into, depreciate d. into, appreciate I believe it is d.

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Answers. 1 helpful answer below.

  • by science_geek on April 28th, 2007

    science_geek

    b is the correct answer. That is what a currency panic is. Fear of devaluation causes the wealthy to move their money into more stable currencies, thus the value of the dollar is decreased. Supply and demand is also applicable in the currency markets.

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