Quoted as units of foreign currency per dollar

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Reference no: EM131300077

Which one of these statements is correct assuming exchange rates are quoted as units of foreign currency per dollar?

The exchange rate rises when the U.S. inflation rate is higher than that of the foreign country.

When a foreign currency appreciates in value it strengthens relative to the dollar.

The exchange rate falls as the dollar strengthens.

The exchange rate moves opposite to the value of the dollar.

Reference no: EM131300077

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